Quicken Loans released its Home Price Perception Index (HPPI) for January, finding that the range between expectations and actual appraisal values is getting smaller. On February 9, the retail mortgage lender announced average home appraisal values in January were 1.75 percent lower than homeowners’ expectations.

Quicken Loans Perception of Home Values Across America

For the fifth consecutive month, the gap between perception and actual value has decreased.

In the month of January, nationwide home values fell by 0.42 percent on a monthly basis and increased 3.37 percent annually.

“It’s always important to understand your local real estate market,” said Quicken Loans Chief Economist Bob Walters.

“If home values are growing in the area, homes may be gaining equity faster than consumers realize. On the other hand, if the local market is struggling, the appraisers – who are most aware of home value changes – may recognize this before homeowners come to terms with reality.”

National Home Price Perception Index

Denver and Chicago were on opposite ends of the spectrum, with Denver residents getting pleasantly surprised, but Chicagoans– not so much.

Miami and Seattle homeowners were the closest to being on point with the value of their homes. Seattle residents were slightly in the red and Miami homeowners were under-guessing a bit.

Home Price Perception Index

In Chicago, homeowners are experiencing negative home appraisals.

In January 2015, the appraiser value was 0.38 percent lower than the homeowner perception of their home’s value. The gap between homeowner perceptions and appraisals has grown larger– and it’s not good news.

In December 2015 appraiser value was 2.85 percent lower than homeowner perception, and it remained at the same level into January 2016.

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