Home values continue to lag owners’ expectations, Quicken Loans, Detroit reported Tuesday.
Appraised values were an average of 1.93% lower than what homeowners expected, according to Quicken Loans’ National Home Price Perception Index (HPPI). The gap between estimated value and appraised value, on a national level, continued to widen for a sixth consecutive month.
Appraisals are falling farther from owner estimates, but they are rising higher each month. Home values rose an average of 0.63% in May, and increased 4.92% year-over-year, as measured by Quicken Loans’ National Home Value Index (HVI).
Despite the national average, perceptions varied across the country. In Denver or Dallas appraisals were nearly 3% higher than expected, while in Philadelphia or Baltimore appraised values were more than 3% lower than what homeowners estimated.
“It’s important for consumers to see the HPPI and not only think about the difference in perceptions, but the different perceptions across the country,” said Bill Banfield, Quicken Loans executive vp of Capital Markets. “Home values, and home value changes, vary widely depending on the city you’re in. Homeowners, and those looking to buy a home, should keep a close eye on their local market to better understand home values in their area, and the trend they are on.”
Home values rose at a national level, and in much of the country, according to the Quicken Loans HVI – which measures home value changes based solely on appraisals. Nationally, appraised values increased 0.63 percent from their level in May, and rose 4.92% when viewed annually. The Northeast was the only region measured that showed a home value loss, with appraisals dropping 1.63% since the previous month. However all four regions had year-over-year gains, ranging from a 1.15% increase in the Northeast to a 6.85% increase in the West.
“The strong demand for housing paired with the low levels of inventory continue to push values higher,” said Banfield. “Prices are rising as values push higher, making many parts of the country enticing markets for sellers. Many owners will find that they can get more than expected out of their home.”
