Homeowners and appraisers are more closely aligned now on home values than they were this time last year, according to Quicken Loans, news that reflects a healthier market.

The company released its monthly Home Price Perception Index (HPPI) Tuesday, which found that, on average, appraised values were just 0.34 percent less than what homeowners estimated in May, compared with 1.93 percent (five times larger) the previous year, according to Quicken Loans’ National HPPI.

In the majority, three-quarters of cities studied in the HPPI, home value appraisals were actually higher than expected, the study noted, especially in popular towns such as San Jose in Silicon Valley. Homeowners in San Jose, for example, are receiving appraisals that are an average of 2.82 percent higher than they expected.

“Real estate is incredibly local, from style preferences to the direction of the market and everything in between,” said Bill Banfield, Quicken Loans’ executive vice president of capital markets, in a prepared statement.

“Our hope is that this report can help homeowners realize that national headlines don’t always apply in their community. It’s important homeowners talk to real estate or mortgage experts who have experience analyzing their community when they’re thinking of selling or utilizing their home’s equity.”

National Home Price Perception Index, courtesy of Quicken Loans

Home values, meanwhile, rose 0.71 percent from April to May across the country and 6.56 percent year-over-year, according to Quicken Loans’ National Home Value Index.

 

So what does the narrowing gap between appraiser perceptions and homeowners’ expectations mean for agents?

In theory, they are dealing with more realistic sellers when the gap between homeowners perceptions and appraisers narrows.

In a healthy market, homeowners can sell with confidence because “everyone is on the same page,” said Arizona My Home Group team leader, Jason Mitchell.

It makes sense as the country has stabilized more, he said. Appraisers can look at “comps” that are more in line with the current market.

“There is always a lag from appraisals to what homeowners think,” he said.

“Appraisers live six months prior — they go backwards while the homeowner’s mentality goes forward,” Mitchell added. “But now with market stability, they are both on the same page.”

Email Gill South.

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
×
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