Homeowner and Appraiser Opinions Closest They’ve Been in 2 Years

In November, homeowners thought their homes were just 0.67% higher valued than actual appraisal values. This is the smallest this gap has been since March 2015.

Home values did drop slightly, falling 0.09% in November. However, this is still a 4.24% increase over this time last year, according to the latest data from Quicken Loans.

Home Price Perception Index (HPPI)

Homeowners were just 0.67% above actual appraisal values with their estimates in November. This is a 0.32% narrowing of the gap from October.

Quicken Loans Executive Vice President of Capital Markets Bill Banfield said he was happy to see the difference getting tighter.

“It’s encouraging to see opinions from homeowners and appraisers more aligned on a national level,” said Banfield. “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.”

Taking a look at the regional data, homeowners in the West were closest to appraiser estimates, with opinions coming in just 0.43% higher than appraisers. The South followed with an instrument that was 0.70% higher than actual appraised value the Northeast and Midwest were 0.78% and 0.79% high, respectively.

Turning to the metropolitan area data, Dallas is the nation’s most undervalued housing market, with owner estimates coming in 3.25% below those of appraisers. Meanwhile, Cleveland has overtaken Philadelphia in terms of overvalued housing. Owner estimates were 2.35% higher than actual appraisals. Tampa, Florida was the closest to par, with homes overvalued by just 0.01%.

Home Value Index (HVI)

Home values were down 0.09% nationwide in December, but they’ve risen 4.24% on the year based on appraised values.

Banfield said that seasonal price drops are common at this time of year.

“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,” he said. “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.”

Turning to the regional data, values went up 0.30% in November in the West and have risen 4.61% on the year. The Midwest also saw an increase, up 0.21% and 4.91% annually. Values did drop 0.19% in the South, where appraisal values have still gone up 5.84% since November 2016. In the Northeast, values were down 0.53% and are up just 1.75% since last year.

Rates are still low and home values are still in an upward trend, despite November’s dip. If you’re in the market to buy or refinance, it’s still an excellent time! If you want to get started online, you can do so by visiting Rocket Mortgage^® by Quicken Loans^®. If you’d rather get started over the phone, feel free to give us a call at (888) 980-6716.

The Quicken Loans Home Value and Home Price Perception Indexes are released on the second Tuesday of each month on the Quicken Loans Press Room.

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