The trend suggests homeowners "may not have their finger on the pulse of home value changes"
Appraisal values in January are lower than homeowners’ estimates of their homes’ value, according to the Quicken Loans Home Price Perception Index.
The gap between these data points has continued to widen for three consecutive months. Quicken Loans said that this “emerging trend could be a sign that homeowners aren't aware of recent home value changes.”
The metro HPPI also measures the change in perception across the nation. HPPI values dropped in some western cities as their home-value growth slacked off.
"It looks like the HPPI is seeing the start of a downward trend, in lock-step with pockets of moderating home values," said Bill Banfield, Quicken Loans executive vice president of capital markets. "However, with the national measure still reporting appraisals less than half of a percent lower than expected and with home values in the lowest performing metro area less than 2% lower than what homeowners estimated, the housing markets (are) still in a healthy place."
While, appraisers have recorded swings in select areas, home values nationwide continue to march forward, but at a slower clip than in January. According to the National Quicken Loans Home Value Index (HVI), appraisal values displayed a healthy annual growth, with a rise of 5.35% since January 2018.
"While there have been some recent movements in the pace of home appreciation, the housing market is still very strong and is making positive movements across the county," said Banfield. "As homes in each market adjust for the rate of price appreciation, buyers and sellers may find that there is more to negotiate – and some potential complications – if the purchase price isn't supported by the appraised value. The appraised value will be derived from recent, proximate sales, and are the leading indicator for the direction of the local market."
