Tue Sep 11, 2018 9:09am EST
- Quicken Loans' National HPPI shows appraised values 0.28% lower than homeowners estimated in August

DETROIT, Sept. 11, 2018 /PRNewswire/ -- Homeowners' perception of their homes' value was consistent from July to August, staying nearly even with how appraisers viewed home values. The average appraisal was 0.28 percent lower than homeowners expected in August, according to the National Quicken Loans Home Price Perception Index (HPPI). This is the same level as July, but appraisers' and owners' opinions are much closer together than a year ago when homeowner estimates were 1.35 percent lower than appraiser opinions.

While perceptions were unchanged, home values across the country rose as the summer came to an end. The National Quicken Loans Home Value Index (HVI) showed appraisal values increased 1.08 percent since July and jumped 5.79 percent since August 2017.

Home Price Perception Index (HPPI)

As the nation's largest mortgage lender, Quicken Loans is well-positioned to provide data showing how homeowners perceive the value of their home. Owners tell the lender what they think their home is worth at the beginning of the mortgage process. Later, when an appraiser gives their opinion, Quicken Loans can compare these two data points.

In August, the National HPPI reported the average owner estimate was 0.28 percent lower than the value supplied by the appraiser. On a metro level, however it's becoming more likely that an appraisal will be higher than expected. Homeowners in Boston, for example, are seeing appraisals an average of 2.88 percent higher than expected. On the other side of the spectrum, the average homeowner in Chicago is overestimating their appraisal value by 1.74 percent. 

"The variance in the HPPI across the country perfectly illustrates just how localized the real estate market is and how different it can be from one city to the next," said Bill Banfield, Executive Vice President of Capital Markets at Quicken Loans. "It's important for homeowners to look at their local housing market, and their home, objectively before estimating its value. Real estate experts can help them properly estimate their home's value to make the process easier – whether they are selling, or refinancing."

Home Value Index (HVI)

The HVI, which measures home value change by appraisal data, shows a 1.08 percent monthly increase in home values – when viewed nationally – with a 5.79 percent year-over-year jump in appraisal values. All regions measured also showed growth, with the strongest in the West. There was an 8.01 percent rise in home values in the West during August. The weakest growth was in the Northeast, which had a 3.78 percent increase.

"With the summer winding down, there were less 'for sale' signs on lawns across America which left the buyers competing over these available houses and driving the prices up," Banfield said. "We are all watching closely to see when more homes will be put up for sale, balancing the markets, because the demand for housing isn't slowing down.


HVI

July 2018

 

January 2005 = 100

HVI

July 2018

vs.

June 2018

% Change

HVI

July 2018

vs.

July 2017

% Change

HPPI

July 2018

 

Appraiser Value
vs. Homeowner
Perception of
Value*

HPPI

July 2017

 

Appraiser Value
vs. Homeowner
Perception of
Value*

National
Composite

110

+1.08%

+5.79%

-0.28%

-1.35%

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

 

Geographic

Regions

HVI

July 2018

 

January 2005 = 100

HVI

July 2018

vs.

June 2018

% Change

HVI

July 2018

vs.

July 2017

% Change

HPPI

July 2018

 

Appraiser Value
vs. Homeowner
Perception of
Value*

HPPI

July 2017

 

Appraiser Value
vs. Homeowner
Perception of
Value*

West

137.01

+2.61%

+8.01%

-0.14%

-1.17%

South

111.29

+0.58%

+5.61%

-0.27%

-1.32%

Midwest

90.12

+0.09%

+3.97%

-0.33%

-1.46%

Northeast

101.49

+0.40%

+3.78%

-0.41%

-1.48%

*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 2018

 

Appraiser Value
vs. Homeowner
Perception of
Value*

HPPI

June 2018

 

Appraiser Value
vs. Homeowner
Perception of
Value*

HPPI

July 2017

 

Appraiser Value
vs. Homeowner
Perception of
Value*

Boston, MA

+2.88%

+2.91%

+0.89%

Denver, CO

+2.72%

+2.75%

+2.66%

San Jose, CA

+2.59%

+2.83%

+1.55%

Seattle, WA

+2.40%

+2.29%

+2.17%

Minneapolis, MN

+2.16%

+2.18%

+0.32%

San Francisco, CA

+1.94%

+2.24%

+1.36%

Charlotte, NC

+1.90%

+1.73%

+1.08%

Dallas, TX

+1.82%

+2.02%

+2.90%

Las Vegas, NV

+1.67%

+1.42%

+0.07%

Portland, OR

+1.05%

+1.23%

+1.34%

San Diego, CA

+1.04%

+1.16%

+0.76%

Riverside, CA

+1.01%

+0.94%

+0.08%

Washington, D.C.

+0.94%

+0.83%

-0.83%

Kansas City, MO

+0.89%

+1.14%

+0.29%

Atlanta, GA

+0.76%

+0.53%

-0.93%

Sacramento, CA

+0.76%

+1.17%

+0.61%

New York, NY

+0.67%

+0.88%

-1.46%

Los Angeles, CA

+0.62%

+0.71%

+0.86%

Phoenix, AZ

+0.58%

+0.60%

+0.36%

Detroit, MI

+0.25%

+0.34%

-0.37%

Miami, FL

+0.12%

+0.00%

+0.57%

Tampa, FL

-0.64%

-0.37%

-0.51%

Houston, TX

-0.86%

-0.93%

-0.05%

Philadelphia, PA

-0.94%

-0.87%

-3.05%

Baltimore, MD

-1.31%

-1.36%

-2.82%

Cleveland, OH

-1.45%

-1.58%

-2.33%

Chicago, IL

-1.74%

-1.56%

-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.

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 five consecutive years, 2014 – 2018.

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. 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



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