Detroit-based Quicken Loans, the nation’s second-largest retail mortgage lender and the largest lender of FHA mortgages, reported April 14 that appraiser opinions of home values fell further below homeowner opinions in March, according to the lender’s national Home Price Perception Index (HPPI).
Nationally, appraiser opinions were lower than homeowner estimates by 0.40 percent in March, compared to February when appraiser opinions were only 0.13 percent lower than homeowner estimates. This slight change in the national HPPI was consistent with most metro areas examined, nearly all of which saw little perception change from the month prior. Seventeen of the 27 metro areas analyzed are still seeing appraiser opinions higher than homeowner estimates. Although the difference is minor, the HPPI value for Tampa, Fla., turned negative in March, meaning on average, appraiser opinions are now greater than homeowner estimates.
“While the national HPPI shows appraiser opinions trailing those of homeowners, it is encouraging to see the gap at such a narrow margin,” Quicken Loans Chief Economist Bob Walters said. “Although home affordability for buyers can begin to be a problem in a seller’s market, which we are seeing in many of the country’s metro areas, homeowners in a majority of the nation’s largest markets can take solace in the fact that their home may have more equity than they realize.”
Home values also declined in March, showing a decrease of 0.56 percent, according to Quicken’s national Home Value Index (HVI). On a yearly basis, homes were valued 6.42 percent more in March 2015 than in March 2014. This is a slowdown from the previous month, when values showed an 8.46 percent year-over-year growth in February. All four of the regions analyzed saw similar results of small monthly home value declines and modest yearly increases.
“Despite negative housing trends garnering attention, home values nationally are still displaying healthy gains over the long term,” Walters said. “The market is in a lull right now, and all eyes are focused on homeowners as they decide whether to list their home. The upcoming peak real estate season could set the course for the market and push home values positively or negatively in a big way.”