Owners’ home valuations exceeded appraisals nationally, but regional perceptions varied substantially
The gap between the home-price opinions of owners and appraisers narrowed in August amid continued home-value optimism among owners, according to Quicken Loans.
During the month, appraised values were 1.35% less than homeowner expectations, according to the company’s National Home Price Perception Index (HPPI). The HPPI indicated a 1.55% difference in July. The company’s National Home Value Index (HVI), meanwhile, revealed that home values rose 0.19% during the month, while values increased 2.64% on average when compared to August 2016.
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The index showed that home-price perceptions varied widely from region to region. In the West, home values were 3% more than homeowner estimates, while the Midwest and Northeast had home values that were 3% lower than expectations.
“One of the biggest lessons from the HPPI is highlighting how regionalized real estate is,” said Bill Banfield, Quicken Loans executive vice president of capital markets. “Homeowners who have a better understanding of their local housing market can make more informed decisions about their home. After all, their house is not just where they live, but one of their bigger assets.”
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The August increase in home values was the slowest pace for the year, according to the company. The HVI also revealed regional variations in home values. The South and East saw slight decreases in home values at 0.52% and 0.58%, respectively. Meanwhile, appraisal values increased in the Midwest and West regions at 0.16% and 1.34%, respectively.
“As the sun sets on the summer, some of the intense competition for housing also winds down,” said Banfield. “It’s important to focus on the annual numbers with the HVI. While there can be some monthly variations in the data, especially as seasons start to change, the annual numbers show healthy growth across the country.”
