Quicken Loans released its Home Price Perception Index (HPPI) for June, finding the range between homeowner expectations and actual appraisal values continues to grow in the U.S. The retail mortgage lender recently announced average home appraisal values in June were 1.93 percent lower than homeowners’ expectations, a slight 0.4 percent increase the gap from the 1.89 percent rate in May.

“Perception is everything. It can make or break a home sale or mortgage refinance,” Quicken Loans Chief Economist Bob Walters said in a press release. “That’s why it’s so important for homeowners to realize how they perceive their home’s value could vary widely from how an appraiser views it.”



Although maybe not as fast as some homeowners like to think, home values are still rising. The Home Value Index (HVI), which measures home values across the nation, increased 0.84 percent month-over-month in June and 4.47 percent year-over-year.


As the report points out, home values and perceptions can vary widely across the country. Homeowners in markets like Denver, San Francisco and Dallas are likely to see appraisals from around 2 to 3.23 percent higher than their expectations. And although their counterparts’s expectations in Cleveland, Chicago and Detroit aren’t in line with appraisals, either, it’s on the opposite end of the spectrum, with the HPPI in those markets falling anywhere from -2 to -3 percent.

The western region of the country saw the highest increases in home values month-over-month (1.45 percent) and year-over-year (5.84 percent), while the Northeast saw the lowest increases in both, growing 0.17 from May to June and 2.07 percent annually.

The leaderboard was switched on the HPPI scale, though, with Northeastern homeowners overestimating their home values by 2.14 percent in June and those in the West by 1.7 percent, according the report.


Houston homeowners continue to experience higher home appraisals than they expect, but the gap also continues to shrink. The positive difference between homeowner perceptions and actual appraisals in Houston was 1.31 percent in June of this year — a significant drop from the positive 3.37 percent posted in June 2015

The positive HPPI in Houston also dropped slightly since May, when the gap was 1.44 percent.

The Quicken Loans Home Price Index and Home Price Perception Index measures the difference between appraisers’ values and homeowners’ opinions of home values. It compares estimates on homeowner-supplied refinance mortgage applications to the appraisal later performed. The national composite is determined analyzing appraisal and homeowner estimates throughout the country. Quicken’s Home Value Index is based solely on appraisal data from home purchases and mortgage refinances.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
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