DETROIT, Aug. 13, 2019 /PRNewswire/ — The average home appraisal in July came in an average of 0.63% lower than owners’ estimates, according to Quicken Loans’ National Home Price Perceptions Index (HPPI). This is the third consecutive month of a tightening gap between the two data points, showing that owners are becoming more in tune with their homes’ current value.

Quicken Loans’ National HPPI shows appraised values 0.63% lower than homeowners estimated in July

The declination reflects the further tightening of the two data points across most of the metro areas studied. Of the 27 metro areas analyzed, 20 had less than a 1% difference between perceived and actual home values, while only two report a greater than 1.5% difference. Owners in Charlotte have homes worth an average of 1.92% more than their expectations, while Chicago homes are valued and average of 1.66% less than their owners estimate.

«As expected, with mortgage rates at three-year lows and the refinance share of mortgage activity continuing to hover above 50%, homeowners are increasingly aware of the true value of their home, said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. «Prices continue to increase in most areas but the rapid growth of years past has moderated giving homeowners a better sense of their home’s market value.»

Quicken Loans’ Home Value Index (HVI), which is based solely on the appraisal data of America’s largest mortgage lender, shows that values increased 0.6% nationally in July, though the year-over-year increase is identical to last month’s 4.78% jump. July’s HVI level, is at its highest since January 2007 – showing just how far the country has come since the Great Recession.

Appraisal values rose in every region, with the Northeast experiencing a 1.34% increase in home values, and the South measuring a 0.04% bump in appraisal values. All regions continue to enjoy significant year-over-over increases, which range from 3.51% in the South to 5.45% in the Midwest.

«The fact that July had the highest Quicken Loans Home Value Index since January 2007, has to be encouraging, especially to those who were deeply underwater during the worst of the recession,» Banfield said. «The 1% drop in interest rates so far this year will help address affordability but the strength of the economy and a lack of new homes being built will also play a big role.»

HVI

July 2019

 

January 2005 =
100

HVI

July 2019

vs.

June 2019

% Change

HVI

July 2019

vs.

July 2018

% Change

HPPI

July 2019

 

Appraiser Value
vs. Homeowner
Perception of
Value*

HPPI

July 2018

 

Appraiser Value
vs. Homeowner
Perception of
Value*

National
Composite

114.02

+0.60%

+4.78%

-0.63%

-0.28%

*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

July 2019

 

January 2005 =
100

HVI

July 2019

vs.

June 2019

% Change

HVI

July 2019

vs.

July 2018

% Change

HPPI

July 2019

 

Appraiser Value
vs. Homeowner
Perception of
Value*

HPPI

July 2018

 

Appraiser Value
vs. Homeowner
Perception of
Value*

West

139.17

+0.22%

+4.22%

-0.52%

-0.14%

South

114.53

+0.04%

+3.51%

-0.63%

-0.30%

Northeast

106.25

+1.34%

+5.10%

-0.67%

-0.33%

Midwest

94.95

+1.06%

+5.45%

-0.69%

-0.35%

*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

July 2019

 

Appraiser Value
vs. Homeowner
Perception of
Value*

HPPI

June 2019

 

Appraiser Value
vs. Homeowner
Perception of
Value*

HPPI

July 2018

 

Appraiser Value
vs. Homeowner
Perception of
Value*

Charlotte, NC

+1.92%

+2.01%

+1.73%

Minneapolis, MN

+1.29%

+1.14%

+2.18%

Boston, MA

+0.90%

+1.26%

+2.91%

San Jose, CA

+0.80%

+0.72%

+2.83%

Las Vegas, NV

+0.58%

+0.75%

+1.42%

Denver, CO

+0.56%

+0.82%

+2.75%

Seattle, WA

+0.51%

+0.45%

+2.29%

Atlanta, GA

+0.29%

+0.40%

+0.53%

San Francisco, CA

+0.17%

+0.15%

+2.24%

Dallas, TX

+0.12%

+0.17%

+2.02%

Portland, OR

+0.01%

-0.06%

+1.23%

Phoenix, AZ

-0.05%

-0.02%

+0.60%

Washington, D.C.

-0.11%

+0.00%

+0.83%

New York, NY

-0.25%

-0.26%

+0.88%

Los Angeles, CA

-0.41%

-0.35%

+0.71%

Sacramento, CA

-0.43%

-0.25%

+1.17%

San Diego, CA

-0.48%

-0.20%

+1.16%

Detroit, MI

-0.57%

-0.75%

+0.34%

Houston, TX

-0.63%

-0.40%

-0.93%

Riverside, CA

-0.64%

-0.63%

+0.94%

Tampa, FL

-0.65%

-0.51%

-0.37%

Baltimore, MD

-0.70%

-0.68%

-1.36%

Kansas City, MO

-1.11%

-0.80%

+1.14%

Cleveland, OH

-1.18%

-1.39%

-1.58%

Miami, FL

-1.28%

-1.19%

+0.00%

Philadelphia, PA

-1.49%

-1.69%

-0.87%

Chicago, IL

-1.66%

-1.52%

-1.56%

*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 nearly half a trillion dollars of mortgage volume across all 50 states from 2013 through 2018. 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 nine consecutive years, 2010 – 2018, and also ranked highest in the country for customer satisfaction among all mortgage servicers the past six consecutive years, 2014 – 2019.

Quicken Loans was once again named to FORTUNE magazine’s «100 Best Companies to Work For» list in 2019 and has been included in the magazine’s top 1/3rd of companies named to the list for the past 16 consecutive 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.

 

 

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SOURCE Quicken Loans