Owners, Appraisers Find More Common Ground

Quicken Loans, Detroit, said homeowners and appraisers are increasingly breaking bread together.

The company’s monthly National Home Price Perception Index found homeowners and appraisers were more likely to be in line with the home’s value in July, with appraised values in most cases coming in higher than homeowner expectations.

The National HPPI showed appraised values 0.28% lower than homeowners estimated in July. However, this is much improved from a year earlier, when appraisal values were an average of 1.55 percent lower than anticipated. The difference in perceptions is improving at a local level as well, with appraisal values higher than expected in nearly 80 percent of the metro areas examined.

And Quicken said appraisal values themselves are making annual gains. As reported by the National Quicken Loans Home Value Index, home values rose an average of 4.86 percent annually, despite a 0.60 percent dip from June to July.

“The story the HPPI is currently telling is one of an ever-strengthening housing market,” said Bill Banfield, Executive Vice President of Capital Markets with Quicken Loans. “With more appraisals meeting, or even reaching beyond, the level homeowners were expecting it’s clear home values in the majority of areas have recovered to the point where the owners’ personal view is finally lining up with the appraisers’ expert view.”

The HVI noted the only region that fell in value was the Midwest, dropping 1.01 percent and losing the majority of its gains from June. However, every region showed annual growth. The West led the way, with a 6.68 percent increase in home value. The Northeast trailed with a 2.78 percent gain since July 2017.

“The HVI is telling a similar story of the housing market’s health,” Banfield said. “Other than some small monthly shifts, home values continue to grow at an annual pace exceeding inflation. This can hurt affordability and hinder first time buyers from entering the market.”