Owner estimates of home values slightly exceeded appraisers' opinions in October, although owner expectations moved closer to appraised values than they were in September, according to the Quicken Loans Home Price Perception Index (HPPI). The average appraisal was 1.15% lower than the home owner expected, a narrowing of the gap between home owner estimates and appraiser valuations. In September, appraised values were 1.26% lower than homeowner expectation.
A second report released by Quicken Loans, the Home Value Index (HVI) – which is the only measure of home valuation based solely on appraisals – shows annual home value growth is steadily slowing. Nationally, appraised values rose a strong 5.97% year-over-year in October, but they showed a dip from September when home values rose 7.78% from the year prior.
This is the fourth consecutive month the HPPI moved closer to equilibrium. Local trends stayed largely the same from the month prior, with appraisal values rising past homeowner estimates in the West and home values falling below homeowner expectations in the East and Midwest.
"This information can be helpful to homeowners to either prevent bumps in the mortgage process or realize they may have more equity available to them than they think," said Quicken Loans Chief Economist Bob Walters.
Average home values, as measured by appraisals, fell slightly in October showing a 0.62% decline according in the national HVI. This extended reductions seen in September, when appraised values dipped 0.28%. Despite monthly decreases, home values in October still showed strong growth of 5.97% as compared to October 2015. All regional areas measured by the HVI showed annual increases, ranging from 5.52% growth in the Northeast to an 8% rise in values in the West.
