Homeowners, on average, have a higher opinion of their home values than appraisers do. However, the gap between the average owners’ estimates and the average appraised values has reached its narrowest margin in 2017.
In November, home appraisals were an average of 0.67% lower than what owners expected, according to Quicken Loans’ National Home Price Perception Index (HPPI).
Though owner expectations have lagged appraiser opinions, home values continue to climb across the country. In fact, home values have risen 4.24% year-over-year – despite a slight 0.09% dip from October to November.
Home Price Perception Index (HPPI)
The gap between owner perceptions and appraiser opinions of home values is the smallest since March 2015. November is also the sixth-straight month the gap between the two values has narrowed. Owner expectations were an average of 0.67% higher than what an actual appraisal showed, according to November’s National HPPI. This value varies widely across the country. Cleveland is on the low end of the scale, with appraisals an average of 2.35% lower than expected. On the flip side, homeowners in Dallas are underestimating their homes’ value – with the average appraisal 3.25% higher than what the owner estimated.
“It’s encouraging to see opinions from homeowners and appraisers more aligned on a national level,” said Bill Banfield, Quicken Loans executive vice president of capital markets. “Appraisals are one of the most important data points when applying for a mortgage. If an appraisal is lower than expected when refinancing, the homeowner will need to bring more funds to closing, or might even need the mortgage to be restructured. The more homeowners and appraisers agree, the smoother the process is.”
Home Value Index (HVI)
Nationally, the HVI showed a slight dip in appraisal values in November – with a 0.09% decrease from October. However, a 4.24% increase since the previous year has helped maintain the positive momentum in the annual measure. While all regions had year-over-year growth, the southern and northeast experienced slight drops in average home value from October to November.
“As we move into the holiday season, Americans are focusing less on finding their dream home and more on finding the perfect gifts to give to their loved ones,” said Banfield. “As housing demand temporarily cools this time of year, we also see a dip in home values. However, it’s a promising sign to see values continue rising annually.”
HVI November 2017
January 2005 = 100 | HVI November 2017 vs. October 2017 % Change | HVI November 2017 vs. November 2016 % Change | HPPI November 2017
Appraiser Value vs. Homeowner Perception of Value* | HPPI November 2016
Appraiser Value vs. Homeowner Perception of Value* | |
| National Composite | 105.09 | -0.09% | +4.24% | -0.67% | -1.00% |
*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.
Geographic Regions | HVI November 2017
January 2005 = 100 | HVI November 2017 vs. October 2017 % Change | HVI November 2017 vs. November 2016 % Change | HPPI November 2017
Appraiser Value vs. Homeowner Perception of Value* | HPPI November 2016
Appraiser Value vs. Homeowner Perception of Value* |
| West | 127.22 | +0.30% | +4.61% | -0.43% | -0.77% |
| South | 107.22 | -0.19% | +5.84% | -0.70% | -0.99% |
| Northeast | 99.24 | -0.53% | +1.75% | -0.78% | -1.15% |
| Midwest | 87.18 | +0.21% | +4.91% | -0.79% | -1.32% |
*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.
Metropolitan Areas | HPPI November 2017
Appraiser Value vs. Homeowner Perception of Value* | HPPI October 2017
Appraiser Value vs. Homeowner Perception of Value* | HPPI November 2016
Appraiser Value vs. Homeowner Perception of Value* |
| Dallas, TX | +3.25% | +3.13% | +1.94% |
| Denver, CO | +2.36% | +2.46% | +3.10% |
| Seattle, WA | +2.19% | +2.08% | +1.39% |
| San Jose, CA | +2.11% | +1.64% | +1.69% |
| San Francisco, CA | +1.93% | +1.75% | +2.19% |
| Boston, MA | +1.63% | +1.26% | +1.09% |
| Portland, OR | +1.47% | +1.53% | +2.12% |
| Charlotte, NC | +1.16% | +1.01% | +0.53% |
| San Diego, CA | +1.13% | +0.89% | +0.46% |
| Sacramento, CA | +1.06% | +0.71% | +0.95% |
| Los Angeles, CA | +0.99% | +0.91% | +1.32% |
| Miami, FL | +0.86% | +0.71% | +0.18% |
| Minneapolis, MN | +0.70% | +0.47% | +0.89% |
| Kansas City, MO | +0.64% | +0.50% | +0.40% |
| Las Vegas, NV | +0.61% | +0.28% | -0.72% |
| Phoenix, AZ | +0.46% | +0.48% | -0.78% |
| Riverside, CA | +0.32% | +0.11% | +0.03% |
| Detroit, MI | +0.28% | -0.07% | -2.11% |
| Tampa, FL | -0.01% | -0.03% | -1.47% |
| Washington, D.C. | -0.12% | -0.49% | -0.14% |
| Houston, TX | -0.31% | -0.32% | +0.79% |
| Atlanta, GA | -0.36% | -0.49% | -0.72% |
| New York, NY | -0.43% | -0.82% | -1.13% |
| Chicago, IL | -1.37% | -1.78% | -1.68% |
| Baltimore, MD | -2.24% | -2.57% | -2.62% |
| Philadelphia, PA | -2.33% | -2.69% | -2.87% |
| Cleveland, OH | -2.35% | -2.32% | -1.87% |
*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.
