Quicken Loan National Home Price Perception Index (HPPI) found that the gap between homeowner evaluations and appraiser opinions has expanded for the second month in a row. The HPPI revealed that the appraiser rate is at 1.47 percent below what homeowners were expecting last month. The decrease follows a six-month trend in mending differences between homeowners and appraisers.
The value of the homeowners at the beginning of the refinance process was calculated at 1.47 below the findings of the appraisers. Although the rate has decreased, fluctuation around the country continues to vary. For example, Denver has appraisal valued at 2.98 higher rate than homeowners estimated.
Equally, some cities in the East are valued greater than appraisers first reported. Philadelphia appraisals were 2.94 lower than previous calculations. “Having a good understanding of the conditions in their local housing market can be a valuable tool for consumers as they prepare for the home buying or mortgage process,” said Quicken Loans Chief Economist Bob Walters.
The Home Value Index (HVI) found that homes values tend to level out at the end of the year during the winter months. In fact, the average appraisal dropped to 0.34 percent between December to January. The index also found that the appraisal rate tends to drop the most in the Northeastern region, the West grows at a vigorous rate, and the Midwest is firmly behind.
“This steady growth could very well lead to more availability, driving homeowners to consider cashing in on their growing equity by putting their home on the market. When this happens, it will open new opportunities for eager buyers”, said Walters.
The Quicken Loans HPPI symbolizes the difference of opinion between appraisers’ and homeowners. The index evaluates the estimate the homeowner supplies on the refinance mortgage application and the appraisal performed at the end of the mortgage process.
The Quicken Loans HVI is is based solely on the statistics from the home purchases and mortgage refinances.