Home Values Down as Appraisers, Homeowners Get in Sync

December saw home values decline for the first time in 10 months, with all four major U.S. regions experiencing a small month-over-month backslide, according to a report released Tuesday.

Using data drawn from tens of thousands of appraisals nationwide, Quicken Loans reported a 0.74 percent month-over-month drop in its Home Value Index (HVI) last month. Compared to a year ago, values remain up 2.26 percent nationally.

Bob Walters, chief economist for Quicken Loans, said it would be a mistake to put too much emphasis on a slight monthly decline, as "it is common to see some volatility" in month-over-month changes in a healthy economy. Meanwhile, he added that the company will keep a close eye on annual returns.

"While some argue that these declines are merely a correction to previously over-inflated home values, if the trend continues, it could be bumpy for homeowners," Walters said.

All four geographic regions tracked in the HVI posted decreases over the month, ranging from-0.16 percent in the South to -1.91 percent in the Midwest. Annual changes were more spread out, with the West seeing the smallest increase at 1.52 percent and the South seeing the largest at an even 4 percent.

Quicken Loans also reported Tuesday that the gap between homeowners' and appraisers' home value opinions continued to close in December, with appraisers' opinions coming in 1.43 percent above homeowners' nationally. That compares to a difference of 1.56 percent in November and 1.72 percent in December 2013.

The narrowing gap is an encouraging sign that Americans are becoming more tuned in to housing market trends, Walters says.

"[I]t is clear that homeowners are more aware of the state of the home values in their neighborhood, as homeowner estimates and appraiser opinions continue to approach equilibrium," he said. "A part of this awareness is due to the relative stabilization in prices we've seen in the last few months; it will be interesting to see if perceptions remain close if we see more dramatic shifts in home values in 2015."