Quicken: Home Value Perceptions Stable

For the second consecutive month, homeowners seem to understand their home’s value, said Quicken Loans, Detroit.

The company’s monthly national home Price Perception Index reported the average appraisal was just 0.29 percent less than what owners expected in September, virtually unchanged from August (0.28 percent). A year ago, the gap was considerably wider, when appraiser opinions were on average 1.14 percent lower.

The report noted while home value perceptions are holding steady, growth of appraisal values slowed in September. The Home Value Index showed the average appraisal value rose 0.35 percent since the prior month, less than half of the growth rate from August. Annual increases in value are more consistent, with 5.69 percent year-over-year jump in September compared to a 5.79 increase in August.

The West was the only region to buck the trend of monthly gains, posting an 0.56 percent decline in value from August to September. All four regions analyzed show annual growth ranging from a 4.22 percent increase in the Northeast to a 7.06 percent jump in the South.

“Rapid price increases that have spanned more than half a decade have started to affect affordability as average wage increases struggle to keep up,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “While home values are still rising, especially with solid annual jumps, a slowdown in monthly growth is expected to allow the market balance with the more moderate inflation.”