Homeowner Value Estimates Continue to Outpace Appraisals by a Widening Spread
- Quicken Loans' National HPPI shows appraised values were 1.77% lower than homeowners estimated in March
- Home values rose 0.63% nationally in March, with a 3.30% year-over-year increase, according to the Quicken Loans HVI
DETROIT, April 11, 2017 /PRNewswire/ -- Home values continued to rise in March, but not at the pace homeowners estimated across much of the country. On average appraisals were 1.77 percent lower than what homeowners expected, according to the Quicken Loans Home Price Perception Index (HPPI). This marks the fourth consecutive month the gap between homeowner estimates and appraiser opinions of value widened.
Home values continued the upward movement of the last few months and maintained its positive trend which began in early 2012. Appraisals rose 0.63 percent from February to March, but showed strong growth of 3.30 percent year-over-year, according to Quicken Loans' National Home Value Index (HVI).
Home Price Perception Index (HPPI)
While home value perception varies across the country, The National HPPI shows a widening gap between what homeowners think their home is worth and the value appraisers assign. March is the fourth consecutive month of this growing trend, with appraisals 1.77 percent lower than homeowners' estimates. On the other hand, appraisals are showing higher values than homeowners expected in some of the hottest housing markets, many of those on the West Coast.
"The national average shows appraisals lower than homeowner expectations, but some cities are bucking that trend," said Quicken Loans Vice President of Capital Markets, Bill Banfield. "With prices sprinting forward in many of the booming housing markets in the West, it can be difficult for homeowners to keep up with appraisers, who are on the ground, examining real estate price changes every day. This study is one more reminder for consumers to keep an eye on their local market before selling or refinancing. The state of their local market could affect their home's value – on either end of the spectrum."
Home Value Index (HVI)
Quicken Loans' HVI, the only measure of home value change based solely on appraisal data, showed another month of growth in March. Nationally, home values rose 0.63 percent from the previous month. When viewed annually, appraised values increase an average of 3.30 percent. The study showed the strongest monthly growth in the Northeast, with a 1.78 percent increase. However, the South had the fastest annual increase with a 4.67 percent rise in home values.
"Real estate signs are beginning to pop up, even before leaves appear on the neighborhood trees. As home selling season gets started across the country, enthusiastic buyers are battling for available homes," said Banfield. "The increased attention to home sales has led to more competition for a relatively small inventory of homes, continuing to fuel the rising prices."
| HVI March 2017
January 2005 =
|
HVI March 2017 vs. February 2017 % Change
|
HVI March 2017 vs. March 2016 % Change
|
HPPI March 2017
Appraiser Value |
HPPI March 2016
Appraiser Value |
|
| National Composite |
100.46 |
+0.63% |
+3.30% |
-1.77% |
-2.17% |
*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 March 2017
January 2005 =
|
HVI March 2017 vs. February 2017 % Change
|
HVI March 2017 vs. March 2016 % Change
|
HPPI March 2017
Appraiser Value |
HPPI March 2016
Appraiser Value |
| West |
120.79 |
+0.71% |
+3.61% |
-1.46% |
-1.92% |
| South |
103.1 |
+0.84% |
+4.67% |
-1.75% |
-2.14% |
| Northeast |
83.43 |
+1.78% |
+3.85% |
-1.94% |
-2.20% |
| Midwest |
95.4 |
+0.86% |
+2.11% |
-1.96% |
-2.36% |
*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 March 2017 Appraiser Value vs. Homeowner Perception of Value* |
HPPI February 2017 Appraiser Value vs. Homeowner Perception of Value* |
HPPI March 2016 Appraiser Value vs. Homeowner Perception of Value* |
| Denver, CO |
+2.69% |
+2.70% |
+3.52% |
| Dallas, TX |
+2.25% |
+2.05% |
+2.37% |
| Portland, OR |
+1.77% |
+1.81% |
+1.76% |
| San Francisco, CA |
+1.31% |
+1.30% |
+2.88% |
| Seattle, WA |
+1.31% |
+1.31% |
-0.39% |
| Los Angeles, CA |
+1.17% |
+1.10% |
+0.46% |
| Boston, MA |
+1.10% |
+1.05% |
+0.82% |
| Charlotte, NC |
+0.99% |
+0.85% |
-1.59% |
| San Jose, CA |
+0.70% |
+0.64% |
+3.93% |
| Sacramento, CA |
+0.59% |
+0.82% |
+1.05% |
| Houston, TX |
+0.53% |
+0.52% |
+2.05% |
| Kansas City, MO |
+0.47% |
+0.49% |
-1.79% |
| Minneapolis, MN |
+0.43% |
+0.73% |
-0.75% |
| Miami, FL |
+0.33% |
+0.32% |
-0.10% |
| San Diego, CA |
+0.30% |
+0.38% |
+0.13% |
| Riverside, CA |
-0.04% |
-0.05% |
+0.46% |
| Las Vegas, NV |
-0.41% |
-0.39% |
+0.05% |
| Phoenix, AZ |
-0.57% |
-0.59% |
-0.73% |
| Washington, D.C. |
-0.70% |
-0.44% |
+0.09% |
| Atlanta, GA |
-1.01% |
-0.94% |
-1.34% |
| Detroit, MI |
-1.26% |
-1.36% |
-3.01% |
| Tampa, FL |
-1.40% |
-1.33% |
-0.93% |
| New York, NY |
-1.65% |
-1.55% |
-2.11% |
| Chicago, IL |
-2.14% |
-1.96% |
-3.04% |
| Cleveland, OH |
-2.41% |
-2.17% |
-1.91% |
| Baltimore, MD |
-3.18% |
-3.01% |
-3.24% |
| Philadelphia, PA |
-3.20% |
-3.09% |
-3.62% |
*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.
About the HPPI & HVI
The Quicken Loans HPPI represents the difference between appraisers' and homeowners' opinions of home values. The index compares the estimate that the homeowner supplies on a refinance mortgage application to the appraisal that is performed later in the mortgage process. This is an unprecedented report that gives a never-before-seen analysis of how homeowners are viewing the housing market. The HPPI national composite is determined by analyzing appraisal and homeowner estimates throughout the entire country, including data points from both inside and outside the metro areas specifically called out in the above report.
The Quicken Loans HVI is the only view of home value trends based solely on appraisal data from home purchases and mortgage refinances. This produces a wide data set and is focused on appraisals, one of the most important pieces of information to the mortgage process.
The HPPI and HVI are released on the second Tuesday of every month. Both of the reports are created with Quicken Loans' propriety mortgage data from the 50-state lenders' mortgage activity across all 3,000+ counties. The indexes are examined nationally, in four geographic regions and the HPPI is reported for 27 major metropolitan areas. All indexes, along with downloadable tables and graphs can be found at QuickenLoans.com/Indexes.
About Quicken Loans
Detroit-based Quicken Loans Inc. is the nation's second largest retail home mortgage lender. The company has closed more than $300 billion of mortgage volume across all 50 states between 2013 and 2016. Quicken Loans moved its headquarters to downtown Detroit in 2010, and now more than 13,500 of its 16,000 team members work in the city's urban core. The company generates loan production from web centers located in Detroit, Cleveland and Scottsdale, Arizona. The company also operates a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit. Quicken Loans ranked "Highest in Customer Satisfaction for Primary Mortgage Origination" in the United States by J.D. Power for the past seven consecutive years, 2010 – 2016, and highest in customer satisfaction among all mortgage servicers the past three years, 2014 – 2016.
Quicken Loans was ranked #10 on FORTUNE magazine's annual "100 Best Companies to Work For" list in 2017, and has been among the top-30 companies for the last 14 years. It has been recognized as one of Computerworld magazine's '100 Best Places to Work in IT' the past 12 years, ranking #1 for seven of the past eleven years including 2016. For more information, please visit QuickenLoans.com.
Twitter: @QLnews
SOURCE Quicken Loans
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