Home >> Daily Dose >> Homeowner & Appraiser Value Gap Improves in October
Print This Post Print This Post

Homeowner & Appraiser Value Gap Improves in October

appraisal-twoThe gap between homeowner and appraisal values of homes narrowed slightly again in October, as appraisers' values were 1.98 percent under homeowner opinions.

October marks the second consecutive month that the perception gap has shrunk, and the ninth consecutive month where homeowner estimates exceeded appraisal estimates, according to Quicken Loans' Home Price Perception Index (HPPI).

September's report showed that appraiser values were 2 percent higher than homeowner opinions, the report found.

“It’s too early to call it a trend, but it is encouraging to see the gap between the estimates homeowners provide and the appraised values starting to narrow,” said Bob Walters, Quicken Loans Chief Economist. “The more homeowners are in line with appraisers, the easier it will be to refinance their mortgage and easier for those looking to buy a home. If the two are aligned, it eliminates one of the top stumbling blocks in the mortgage process.”

P-HVI-HPPI-Graphs-201511-02-i-1024x750Quicken Loans also reported that home values rose 1.07 percent in October, after two months of mostly flat home value changes, according to the company's Home Value Index. Year-over-year, home values have risen 4.01 percent.

Quicken Loans observed home value increases among all four regions. The Northeast had the highest home appreciation, with a 1.94 percent increase. Meanwhile, the Midwest, South, and West regions all had value growth of less than 1 percent.

San Jose, California’s appraiser opinions were 5.10 percent higher than homeowner values in October, the report showed. Denver, Colorado and San Francisco, California followed this same trend with appraiser values 4.35 percent and 4.22 percent higher than homeowners, respectively.

“Home values continue to make steady, healthy, growth,” said Walters. “Equity gains increase homeowner faith and enthusiasm in the housing market. There are still many Americans underwater, but with every bump in equity more homeowners who have been waiting to list their home are able to sell or more easily refinance–which takes pressure off of those homeowners and provides housing inventory for first time homebuyers.”

Click here to view the full report.

About Author: Xhevrije West

Xhevrije West is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.

Check Also

Refi Interest Wanes as Rates Begin to Rise

As mortgage rates begin to ascend, overall mortgage purchase and refinance application volume has begun to tail off.

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.