Quicken Loans Study Shows Slight Gap Between Owner Perception and Appraiser Opinion of Home Value

Both perceptions of home values and the appraisal values themselves are improving. Quicken Loans' National Home Value Index (HVI) reported 0.71 percent growth in May. Appraisal values rose even more on an annual basis, jumping 6.56 percent year-over-year.  

Home Price Perception Index (HPPI)

In the heart of the spring real estate season, homeowners are increasingly understanding their home values. Nationally, appraisal values are an average of 0.34 percent higher than owners expected, according to the HPPI. A slight tick up from April's level, but a minuscule difference overall. While home value perceptions vary from city to city, more metro areas are experiencing appraisals that are actually higher than expected. This is the case in three quarters of the cities studied in the HPPI. Homeowners in San Jose, for example, are receiving appraisals that are an average of 2.82 percent higher than they expected. Homeowners in The Windy City, on the other hand, are receiving appraisals an average of 1.69 percent lower than what they estimated.

"Real estate is incredibly local, from style preferences to the direction of the market and everything in between," said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. "Our hope is that this report can help homeowners realize that national headlines don't always apply in their community. It's important homeowners talk to real estate or mortgage experts who have experience analyzing their community when they're thinking of selling, or utilizing their home's equity."

Home Value Index (HVI)

Home appraisal values rose 0.71 percent in May, according to the Quicken Loans HVI - the only measurement of home value changes based solely on appraisal data. Annually, home values posted healthy growth, increasing 6.56 percent year-over-year. The West was the only region to buck the trend of monthly gains – posting a 1.41 percent decline in value from April to May. All four regions analyzed show annual growth ranging from a 5.91 percent increase in the Midwest to an 8.42 percent jump in the Northeast.

"As we hit peak real estate season, the number of eager buyers continued to outpace the number of homes that were available, which has led to surges in appraisal values across the country and especially in the Northeast," Banfield said. "The only remedy is to accelerate the pace of construction to fill this need."

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

*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. In addition, Essence Magazine named Quicken Loans "#1 Place to Work in the Country for African Americans."

For more information and company news visit QuickenLoans.com/press-room.

SOURCE Quicken Loans