Home values in the United States continued to inch their way up in October, rising month-over-month in more than half of the country's major metropolitan areas. Based on appraisal data from home purchase and refinance originations around the country, Quicken Loans reported Tuesday that home values were up a little more than 2 percent from September to October, bringing the company's Home Value Index to a reading of 91 nationally. On an annual basis, Quicken's index climbed 3 and a third percent, with 90 percent of tracked markets reporting improvements.
Quicken's report also included findings from its latest Home Price Perception Index, which measures the difference between appraisers' home value opinions and home value estimates from homeowners and buyers. According to the company, appraisers' value opinions came in 1.58 percent higher than homeowners' opinions nationally, down from September but up from a span of less than 1 percent a year ago. While some homeowners might enjoy finding out their home is worth more than they thought, Quicken says it’s better for consumers and appraisers to be on the same page with their estimates.
In a quarterly survey of more than 100 real estate experts and economics, real estate data firm Zillow found 40 percent of respondents believe it will take another three to five years for the housing market to normalize, based on current trends. When asked about headwinds facing the market right now, respondents pointed to low household formation rates, which have been stymied in part by a challenged economy. With incomes slowly growing and negative equity fading, Zillow chief economist Stan Humphries says patience will be a virtue over the next few years as traditional market fundamentals take hold.