For the second time in a row, owners and appraisers have similar perceptions on US home values last month.
Quicken Loans’ National Price Perceptions Index showed that the average home appraisal was 0.71% lower than what owners predicted. The narrowing gap indicates “tightening perceptions” in most of the metros studied.
Chicago and Philadelphia reported a 1.52% and 1.69% difference between perceived and actual home values, respectively, while homes in Charlotte appraised 2.01% higher than what homeowners thought they would.
"The refinance share of mortgage activity is at its highest rate since January of 2018, and it appears that homeowners have done their due diligence on their home's value as millions across the country refinance their home loans," said Bill Banfield, executive vice president of capital markets at Quicken Loans. "This decline in the discrepancy between perceived and appraised value should encourage homeowners who are contemplating a refinance, knowing that appraisals are not likely to disrupt the process when they take advantage of low rates."
Appraised values recovered from May’s decline of over 1%, rebounding 0.56% higher in June, according to Quicken Loans’ Home Value Index. The average home value of US homes also grew 4.78% since June 2018.
"I'm encouraged that the only regional declines in monthly appraisal values were less than a quarter percent, while the increases were both by at least one percent," Banfield said. "Additionally, the annual increase in home values continues to grow, showing that homeowners are much better off than they were a year ago as their homes continue to build value."