Homeowners and appraisers came closer to agreeing on appraisal values in the month of August. Homeowners overestimated value by 1.35% in August, but that’s better than July’s 1.55%.
Home values rose 0.19% in August. This is up 2.64% compared to the same time last year. We’ll get into the details more below, but with home values rising and rates still very low, it could be a good time to lock your rate if you’re looking to buy or refinance.
Home Price Perception Index (HPPI)
It’s important for both purchasers and homeowners to have an accurate estimate of what homes are worth so that there aren’t any surprises when it comes time to close on a home or take advantage of your built-up equity.
Quicken Loans Executive Vice President of Capital Markets Bill Banfield said that despite national numbers showing a 1.35% difference in home value opinions between homeowners and appraisers, it’s much more important to zoom in on your local market.
“One of the biggest lessons from the HPPI, is highlighting how regionalized real estate is,” said Banfield. “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.”
Home values vary widely across the nation at the moment. The difference between perception and the actual value is closest in the West, where homeowners overestimate value by just 1.17%. Homeowners in the South follow, with a difference of 1.32%. Homeowners in the Midwest and Northeast are inflating their home value by 1.46% and 1.48%, respectively. While these differences may seem small, when translated to local markets with transactions in the hundreds of thousands of dollars, it can add up quickly.
Homeowners in Dallas have the most undervalued property, with appraisals coming in 2.90% higher than homeowner estimates. Homeowners in Philadelphia overvalue their homes by 3.05% on the other end of the spectrum. Homeowners in Houston had value estimates that nearly matched appraisal values. They were just 0.05% high. Hopefully, they recover quickly – our thoughts are with those affected by Harvey.
Home Value Index They were just 0.05% (HVI)
Home values were up 0.19% on the month of August and 2.64% since August 2016. Home values had dips and upticks, depending on where you were across the country.
“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.”
Home values in the West were up 1.34% on the month and 5.08% over the same time last year. In the Midwest, values were up 0.16% on the month and 2.62% on the year. Meanwhile, values in the South fell 0.52%, despite being up 3.77% annually. In the Northeast, price growth is a little anemic. Property values were down 0.58% on the month and up only 0.34% annually.
The general trend across the country is still toward rising home values. If you’re in the market to buy, it’s a great time to do so, before values go up. If you want to refinance to lower your rate or cash out equity, rates are in a really good spot right now. If you’re ready to move forward, you can get started online or talk to one of our Home Loan Experts. They would be happy to take your call at (888) 980-6716.
The Quicken Loans Home Price Perception and Home Value Indexes are released on the second Tuesday of each month on the Quicken Loans Press Room.
The post Homeowners and Appraisers Coming Closer Together on Home Values appeared first on ZING Blog by Quicken Loans.
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