On a national level, the Index revealed that in March, home values as determined by appraisers were actually 2.17 percent lower than what homeowners expected. That’s a wider gap than in February, when appraised value was just 1.99 lower than the homeowner’s expectation.
At the regional level, the breach between the two values varies; In the West, some metros showed appraised values were actually higher than expected homeowner values. In the Midwest however, all metros showed appraisals at a much lower price than what owners hoped for.
The best and worst cities for disparities between appraisal and expected homeowner value were found in San Jose, California and Philadelphia. In San Jose, appraiser values were 3.93 percent higher than homeowners expected, while in Philadelphia, they came in 3.63 percent lower.
“The varying HPPI values across the country illustrates the importance of examining the market at the local level,” said Bob Walters, chief economist for Quicken Loans. “If homeowners are eyeing that new home being built across town, they could be pleasantly surprised how much their home will sell for—or in some instances their equity may not take them as far as they think—depending on what area of the country they’re in.”
Today’s report from Quicken wasn’t all bad news though. The accompanying Home Value Index (HVI) actually showed that home values are on a slow but definite rise. Last month, home appraisal valuations were up 0.29 percent from February and 4.77 from the same time last year.
Like the HPPI, the HVI showed some distinct differences in regional data. In the Midwest, appraised values saw a 0.69 percent drop, while the West experienced a 1.52 percent increase over the last month. All four regions of the U.S. saw increases at an annual level.
“It’s not always easy for homeowners to keep their finger on the pulse of their equity,” Walters said. “This data shows homes have continued to increase in value since the depths experienced after the last recession. Those increases mean far fewer Americans have negative equity in their homes. This increases their mobility and is a positive development for all segments of the housing market.”
Click here to view the full report.