Appraisals nearly 2 percent lower than expected by homeowners
Appraiser values were 1.95 percent lower than homeowners’ estimates in April 2016, but the gap between the two is decreasing, according to the national Home Price Perception Index (HPPI).
In March, appraisers’ opinions of home values was 2.17 percent lower than what homeowners expected. The suggested value from appraisers continued to raise in April, despite a slight dip of 0.66 percent of home values since March. However, the pace of appraisers’ valuations was stable, growing at a “measured pace” on a year-to-year basis, increasing 3.79 percent, according to Quicken Loans’ national Home Value Index (HVI), which is home value change based only on appraisals.
Despite some slight increases and decreases, homeowners’ perception of value has come in around -2 percent each month for the past year. However, Philadelphia, which was mentioned specifically by the study, has increased to -3.46 percent in April 2016, compared to -2.02 percent in April 2015.
“The HPPI is in a healthy trend, nationally,” said Quicken Loans Chief Economist Bob Walters. “While everyone wants their appraisals to come back showing more equity than anticipated, like some homeowners in the West, the discrepancy we are seeing now won’t likely derail a mortgage transaction.”
Overall, owners saw an increased value in homes across the country.
“The steady annual increase in home values shows sustainable growth and an improving economy,” said Walters. “We always look for gains to be similar to inflationary growth while avoiding the hikes that could lead to bubble fears. We are currently in that range, which should come as a more comforting sign to many homeowners.”
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