Takeaways:

  • In the top-performing markets — many of which are in the West — appraisers’ perceptions of value are higher than homeowners’.
  • In all regions, the gap between appraiser and homeowner opinion is more than 2 percent.
  • Markets where the gap in opinion is greatest are also those that have not performed well during the summer when it comes to overall price appreciation.

Appraisers’ opinions of home values were 2.65 percent lower than homeowner estimates in August, the largest gap nationally in more than a year.

According to Quicken Loans’ national Home Price Perception Index (HPPI), the gap between appraiser and homeowner estimates has also widened for seven straight months.

The index compares the estimate that homeowners supply on a refinance mortgage application to the appraisal that is performed later in the mortgage process.

P-HVI-HPPI-Graphs-Large1-20150803-1024x750

“The perception trend of this year suggests homeowners may be assuming that home values have been in a steady, linear path upward,” said Bob Walters, chief economist at Quicken Loans. “In reality, home values have remained mostly flat this year, and this false assumption may be leaving homeowners disappointed when their appraisals come in.”

Philadelphia (-3.3 percent), Kansas City (-2.9 percent), Chicago (-2.4 percent) and Charlotte (-2 percent) represent markets where the gap between home value estimates is greatest nationally.

Appraisers’ estimates of home values are 2.3 to 2.8 percent lower than homeowner opinions in the West, Midwest, South and Northeast.

However, there are a handful of metros where appraisers’ opinions are higher than homeowner perceptions.

San Jose (5.8 percent higher) and San Francisco (5 percent) represent the markets where this gap is widest.

Others include Denver (4.3 percent), Houston (3.1 percent), Dallas (nearly 2.7 percent) and Portland (2.3 percent).

Quicken Loans also reported that national home values were nearly flat in August from the prior month — with values rising on a year-over-year basis by 3.24 percent.

Email Erik Pisor

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription