Homeowners Achieve a More Realistic View of Home Values
- Quicken Loans' National HPPI shows appraised values 0.36% lower than homeowners estimated in March
- Home values rose 1.84% nationally in March, but posted a 7.64% year-over-year increase, according to the Quicken Loans HVI
DETROIT, April 10, 2018 /PRNewswire/ -- American homeowners are nearly seeing eye-to-eye with appraisers who are assigning a value to their home. In March, appraisal values were an average of 0.36 percent lower than what homeowners expected, according the Quicken Loans National Home Price Perception Index (HPPI).
Along with improving home value perceptions, appraisals also had positive movement in March. Quicken Loans National Home Value Index (HVI) reported that the average home value rose 1.84 percent since February and jumped 7.64 percent year-over-year.
Home Price Perception Index (HPPI)
Owners estimate their home's value at the beginning of the mortgage process. Then, later in the process, an appraiser provides their opinion of the home's value. As the country's largest mortgage lender, Quicken Loans is well-positioned to compare these two data points in the HPPI, providing a current picture of the housing market and how it's perceived.
The National HPPI found that appraisals in March were an average of 0.36 percent lower than what homeowners estimated. This is an improvement from February when appraisals lagged behind owner expectation by 0.53 percent. Additionally, more than 80 percent of the metro areas reviewed in the HPPI showed appraisals at, or higher than, the owner's estimate.
"This month's HPPI is great news for homeowners who may be thinking of selling their home, or using some of their equity," said Bill Banfield, Quicken Loans Executive Vice President, Capital Markets. "Not only are owners' and appraisers' views of the housing market getting closer together when looking at the nation as a whole, but homeowners in many major areas are building equity at a rapid pace."
Home Value Index (HVI)
Home equity is continuing to climb, according to the HVI – the only measure of home value change based solely on appraisal data. Nationally, home values rose an average of 1.84 percent in March. Even more promising, the national index grew 7.64 percent in the past year. Every region followed the trend of increased appraisal values, ranging from the Northeast showing 5.53 percent home value growth, to the West reporting a 9.99 percent jump in appraisal values.
"A monthly increase in home values, after a stable report last month, shows that demand for the few available homes for sale ramped up in March," Banfield said. "The true test will be whether more homeowners decide to take advantage of these their higher home value and provide some much-needed inventory for buyers."
| HVI March 2018 January 2005 = 100 |
HVI March 2018 vs. February 2018 % Change |
HVI March 2018 vs. March 2017 % Change |
HPPI March 2018 Appraiser Value vs. Homeowner Perception of Value* |
HPPI March 2017 Appraiser Value vs. Homeowner Perception of Value* |
|
| National Composite |
108.14 |
+1.84% |
+7.64% |
-0.36% |
-1.77% |
*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 2018 January 2005 = 100 |
HVI March 2018 vs. February 2018 % Change |
HVI March 2018 vs. March 2017 % Change |
HPPI March 2018 Appraiser Value vs. Homeowner Perception of Value* |
HPPI March 2017 Appraiser Value vs. Homeowner Perception of Value* |
| West |
132.86 |
+3.54% |
+9.99% |
-0.16% |
-1.46% |
| Northeast |
100.68 |
+0.94% |
+5.53% |
-0.39% |
-1.96% |
| Midwest |
88.17 |
+0.31% |
+5.68% |
-0.43% |
-1.94% |
| South |
109.52 |
+1.37% |
+6.23% |
-0.44% |
-1.75% |
*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 2018 Appraiser Value vs. Homeowner Perception of Value* |
HPPI February 2018 Appraiser Value vs. Homeowner Perception of Value* |
HPPI March 2017 Appraiser Value vs. Homeowner Perception of Value* |
| San Jose, CA |
+2.71% |
+2.71% |
+0.70% |
| Dallas, TX |
+2.61% |
+2.72% |
+2.25% |
| Boston, MA |
+2.40% |
+2.00% |
+1.10% |
| Denver, CO |
+2.26% |
+2.22% |
+2.69% |
| Seattle, WA |
+2.20% |
+2.01% |
+1.31% |
| San Francisco, CA |
+1.99% |
+1.91% |
+1.31% |
| Minneapolis, MN |
+1.53% |
+1.20% |
+0.43% |
| San Diego, CA |
+1.41% |
+1.30% |
+0.30% |
| Charlotte, NC |
+1.22% |
+1.18% |
+0.99% |
| Kansas City, MO |
+1.09% |
+0.94% |
+0.47% |
| Portland, OR |
+1.03% |
+1.01% |
+1.77% |
| Los Angeles, CA |
+0.91% |
+0.81% |
+1.17% |
| Riverside, CA |
+0.84% |
+0.75% |
-0.04% |
| Las Vegas, NV |
+0.72% |
+0.58% |
-0.41% |
| Sacramento, CA |
+0.72% |
+0.84% |
+0.59% |
| Detroit, MI |
+0.69% |
+0.43% |
-1.26% |
| Miami, FL |
+0.66% |
+0.83% |
+0.33% |
| Washington, D.C. |
+0.46% |
+0.38% |
-0.70% |
| New York, NY |
+0.42% |
+0.19% |
-1.65% |
| Phoenix, AZ |
+0.40% |
+0.47% |
-0.57% |
| Tampa, FL |
+0.21% |
+0.42% |
-1.40% |
| Atlanta, GA |
+0.06% |
-0.07% |
-1.01% |
| Houston, TX |
-0.92% |
-0.85% |
+0.53% |
| Baltimore, MD |
-1.18% |
-1.46% |
-3.18% |
| Cleveland, OH |
-1.44% |
-1.76% |
-2.41% |
| Chicago, IL |
-1.47% |
-1.24% |
-2.14% |
| Philadelphia, PA |
-1.62% |
-1.84% |
-3.20% |
*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 largest home mortgage lender. The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017. Quicken Loans moved its headquarters to downtown Detroit in 2010. Today, Quicken Loans and its Family of Companies employ more than 17,000 full-time team members in Detroit's urban core. The company generates loan production from web centers located in Detroit, Cleveland and Phoenix. Quicken Loans 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 the country for customer satisfaction for primary mortgage origination by J.D. Power for the past eight consecutive years, 2010 – 2017, and also ranked highest in the country for customer satisfaction among all mortgage servicers the past four consecutive years, 2014 – 2017.
Quicken Loans was once again named to FORTUNE magazine's "100 Best Companies to Work For" list in 2018 and has been included in the magazine's top 1/3rd of companies named to the list for the past 15 consecutive years. The company was also named the #1 place to work in technology in 2017 by Computerworld magazine's "100 Best Places to Work in IT," a recognition it has received 8 times in the past 12 years.
For more information and company news visit QuickenLoans.com/press-room.
SOURCE Quicken Loans
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