Appraisers, Homeowners Remain Near Alignment on Home Values

Quicken Loans, Detroit, said owner perceptions of their home value–and appraisers’ estimates–remained in relative alignment for the eighth consecutive month.

The company’s monthly National Home Price Perception Index reported appraised values of home at just 0.28 percent lower than homeowner estimates, even as home values continued to dip.

The report said appraised values decreased by 0.55 percent between September and October, but have risen 4.36 percent since October 2017, representing the lowest year-over-year increase in the past 12 months.

Bill Banfield, Quicken Loans Executive Vice President of Capital Markets, said the average homeowner expectation is a “vast improvement” over the past year, when there was nearly a 1 percent difference between the two data points. When viewed by the metro area, appraisals range from 2 percent lower than what the homeowners estimated in Chicago to nearly 3 percent higher than expected in Boston.

“With homeowner estimates and appraiser opinions moving more closely together, mortgages are less likely to run into snags in the process,” Banfield said.

Appraised values, as measured by Quicken Loans Home Value Index, continued to make gains over 2017 levels, despite a small monthly dip. Home values jumped 4.36 percent year-over-year, the smallest gain this year, but still outpacing inflation. The West posted the highest annual home value gain even though it showed the largest decline from September to October of this year. The home value growth in the Northeast is the most sluggish of all the regions, with just a 2.59 percent annual increase in appraised values and a 0.48 percent decline month-over-month.

“The pace of home price growth appears to be moderating and varies by region representing a healthy adjustment to strong price gains of the past,” Banfield said. “Slower gains in prices can balance out changes in interest rates affecting affordability for those looking to purchase a new home.”