The gap between the home value opinions of appraisers and owners shrank in February, but appraisals remain below owner expectations, according to the Home Price Perception Index (HPPI) released by Quicken Loans.
The HPPI revealed that February appraisals were 0.53% below homeowner expectations. The improvement during the month marks a return to a trend of opinions moving closer together that took a step back in January. Quicken Loans also said that this is the fifth straight month where the gap has been less than 1%.
Meanwhile, Quicken Loans’ Home Value Index (HVI) showed that appraisal values were steady during the period, declining only 0.07% from the prior month. Year over year, appraisals surged 6.37% from February 2017. However, the annual increase trailed the 7.03% year-over-year jump recorded in January.
More than three quarters of metro areas covered by the HPPI bucked the national trend, with Dallas leading the metros with appraisals higher than owner estimates with its 2.72% average gap.
"The Home Price Perception Index is a perfect example of how localized housing is across the country," said Bill Banfield, Quicken Loans executive vice president of capital markets. "The fact that appraisals are showing home values nearly 3% higher than expected in Dallas, but the average appraisal is lower than the owner estimates by almost 2% in Philadelphia, illustrates this to a tee. Dallas is an incredibly hot housing market right now and appraisers are seeing just how fast home values are climbing. When shopping for a home, or even refinancing a current mortgage, consumers should always keep the changes in their local market in mind before estimating a home's value."