The average home appraisal in June was 0.71% lower than owners' estimates, according to the Quicken Loans' National Home Price Perceptions Index (HPPI).
After six months of growing gaps, this is the second month in a row that the two data points tightened, showing that owners and appraisers share similar opinions on of home values nationwide as spring home buying season gives way to summer.
The declining margin between the two data points reflects the tightening perceptions in the metro areas studied, with only three cities having reporting a 1.5% difference between perceived and actual home values. Chicago and Philadelphia had their homes appraise an average of 1.52% and 1.69% lower than what homeowners expected, respectively. On the other hand, Charlotte-area homes appraised and average of 2.01% higher than what homeowners estimated.
"The refinance share of mortgage activity is at its highest rate since January of 2018, and it appears that homeowners have done their due diligence on their home's value as millions across the country refinance their home loans," said Bill Banfield, Quicken Loans EVP of capital markets. "This decline in the discrepancy between perceived and appraised value should encourage homeowners who are contemplating a refinance, knowing that appraisals are not likely to disrupt the process when they take advantage of low rates."
Quicken Loans' Home Value Index (HVI) shows that appraised values rebounded from May's more than 1% decline, as the average home appraised 0.56% higher in June. Additionally, the average home increased in value by 4.78% since June of last year, providing significant equity to millions of homeowners.
The increase in appraisal values is due in large part to the West, where home values experienced a 1.87% jump, leading the nation. The Northeast experienced a 1.00% month-over-month increase. While the Midwest and South reported decreases in appraisal values, both were less than 0.25%. All regions have experienced significant year-over-year increases in appraisal values, ranging from 3.83% in the South to 5.20% in the West.
"I'm encouraged that the only regional declines in monthly appraisal values were less than a quarter percent, while the increases were both by at least one percent," Banfield said. "Additionally, the annual increase in home values continues to grow, showing that homeowners are much better off than they were a year ago as their homes continue to build value."
HVI June 2019
January 2005 = 100 | HVI June 2019 vs. May 2019 % Change | HVI June 2019 vs. June 2018 % Change | HPPI June 2019
Appraiser Value vs. Homeowner | HPPI June 2018
Appraiser Value vs. Homeowner | |
| National Composite | 113.34 | +0.56% | +4.78% | -0.71% | -0.25% |
*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.
Geographic | HVI June 2019
January 2005 = 100 | HVI June 2019 vs. May 2019 % Change | HVI June 2019 vs. June 2018 % Change | HPPI June 2019
Appraiser Value vs. Homeowner | HPPI June 2018
Appraiser Value vs. Homeowner |
| Midwest | 93.95 | -0.23% | +3.29% | -0.69% | -0.42% |
| West | 138.87 | +1.87% | +5.20% | -0.69% | 0.04% |
| South | 114.48 | -0.16% | +3.83% | -0.72% | -0.30% |
| Northeast | 104.85 | +1.00% | +4.46% | -0.75% | -0.33% |
*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.
Metropolitan Areas | HPPI June 2019
Appraiser Value vs. Homeowner | HPPI May 2019
Appraiser Value vs. Homeowner | HPPI June 2018
Appraiser Value vs. Homeowner |
| Charlotte, NC | +2.01% | +1.99% | +1.53% |
| Boston, MA | +1.26% | +1.72% | +2.55% |
| Minneapolis, MN | +1.14% | +1.19% | +2.05% |
| Denver, CO | +0.82% | +0.98% | +2.69% |
| Las Vegas, NV | +0.75% | +0.87% | +1.09% |
| San Jose, CA | +0.72% | +0.78% | +3.25% |
| Seattle, WA | +0.45% | +0.62% | +2.00% |
| Atlanta, GA | +0.40% | +0.48% | +0.35% |
| Dallas, TX | +0.17% | +0.43% | +2.06% |
| San Francisco, CA | +0.15% | +0.34% | +2.25% |
| Washington, D.C. | 0.00% | -0.01% | +0.85% |
| Phoenix, AZ | -0.02% | +0.01% | +0.47% |
| Portland, OR | -0.06% | -0.02% | +1.13% |
| San Diego, CA | -0.20% | -0.02% | +1.34% |
| Sacramento, CA | -0.25% | -0.05% | +1.26% |
| New York, NY | -0.26% | -0.38% | +0.86% |
| Los Angeles, CA | -0.35% | -0.29% | +0.81% |
| Houston, TX | -0.40% | -0.34% | -0.88% |
| Tampa, FL | -0.51% | -0.57% | -0.24% |
| Riverside, CA | -0.63% | -0.55% | +0.95% |
| Baltimore, MD | -0.68% | -0.86% | -1.22% |
| Detroit, MI | -0.75% | -0.97% | +0.61% |
| Kansas City, MO | -0.80% | -0.47% | +1.26% |
| Miami, FL | -1.19% | -1.03% | -0.05% |
| Cleveland, OH | -1.39% | -1.70% | -1.46% |
| Chicago, IL | -1.52% | -1.51% | -1.69% |
| Philadelphia, PA | -1.69% | -1.74% | -1.09% |
*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.
