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Home Value Growth Tops 2% in October

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 2.03 percent from September to October, bringing the company's Home Value Index to 91.09 nationally.

At the metro level, values were up month-to-month in 15 of the 27 largest markets, led by a 6.04 percent gain in Houston. Growth also topped 4 percent in San Jose (5.28 percent), New York (4.36 percent), and Charlotte, North Carolina (4.36 percent).

At the other end, Minneapolis, Portland, and Boston all ranked highest in depreciation, with monthly declines approaching 4 percent.

On an annual basis, Quicken's HVI climbed 3.35 percent, with only Charlotte (-0.32 percent), Tampa (-0.08 percent), and Baltimore (-0.74 percent) reporting decreasing home values.

"The vast majority of the country is seeing steady, single-digit, home value increases," said Bob Walters, chief economist for Quicken Loans. "This is the healthy momentum we look for in a stable housing market."

Quicken's report also included findings from its latest Home Price Perception Index (HPPI), 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 a gap of 1.62 percent in September but up from a span of 0.83 percent a year ago.

While some homeowners might enjoy finding out their home is worth more than they thought, Walters explained that it's better for the housing market for homeowners and appraisers to be on the same page with their estimates.

"The closer together the appraiser and homeowner opinions are, the more homeowners are understanding what is happening to their local housing market," he said. "Whether homeowners are looking to sell soon, hoping to refinance or applying for a home equity loan—there are many benefits to understanding the current home value trends in their area."

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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