Appraiser opinions regarding home value trailed homeowners’ own estimates by 1 percent last month, according to the latest Quicken Loans’ National Home Price Perception Index (HPPI). The gap between the two, the Index shows, continues to close.
“The HPPI compares the perceived gap between the homeowner’s and the appraiser’s opinion of home values and has provided an intriguing look into the psychographics of our housing market,” says Quicken Loans Chief Economist Bob Walters. “The most recent HPPI indicates homeowners and appraisers are closer to agreeing at the end of 2016 than they were at the start of the new year. It’s our hope that with this information the only surprises this holiday season are the ones wrapped under the tree.”
The latest Quicken Loans National Home Value Index (HVI), meanwhile, shows a pick-up in annual home value growth. Appraised values, according to the Index, rose 5.28 percent year-over-year in November.
A summary of the HPPI:
Homeowners have made significant progress in understanding appraisers’ opinions of their home values in 2016. Nationally, home value expectations of individuals refinancing moved closer to the values given by appraisers as the year went on. The HPPI has been on a trend of narrowing the gap between homeowner estimates and appraiser opinions of home values since April. This trend continued in November when the National HPPI showed the average owner’s estimate of value just 1 percent higher than the appraiser’s opinion.
A summary of the HVI:
Despite some monthly variations, appraisal values measured by the National HVI have been on the rise throughout 2016. Home values increased 5.54 percent since January. Staying in line with the trend, the average appraiser valuation rose 0.42 percent in November—up 5.28 percent year-over-year. The West continued to lead the country in home value growth, with a 7.32 percent annual increase.
“Home values pushed higher throughout 2016, largely driven by lack of supply in the hottest markets,” says Walters. “It’s yet to be seen if these increases will continue or wane as homebuilding grows, boosting inventory.”
For more information, please visit QuickenLoans.com/Indexes.
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