Home values were up nationally by 2.15 percent from August to September, according to new data from
Quicken Loans. This marked the largest monthly increase in nearly five years. Values were up by 6.52 percent from September 2018.
On a regional measurement, the West saw the largest monthly jump in home values at 2.93 percent while the Midwest achieved the largest annual improvement with a 6.34 percent increase in average appraised value.
“Despite the start of the school year, and the introduction of cooler temperatures in parts of the country, home shoppers are still active,” said Bill Banfield, executive vice president of capital markets for Quicken Loans. “Buyer interest, combined with persistently low home inventory, continues to drag up home values. With August’s jump in homebuilding, at its highest level in 12 years there could be some hope on horizon for home shoppers who haven’t been able to find a home that is a perfect fit at the right price.”
Quicken Loans also reported the average home appraisal in September was a mere 0.49 percent lower than what homeowners expected in September, down from 0.64 percent in August. The Detroit-based company’s National Home Price Perception Index determined the average appraisal was higher than expected in 55 percent of the metro areas tracked for the data report, while all of the metros with average appraisals lower than the homeowners’ estimate had a less than a two percent gap between the expectation and the actual appraised value.
“Underestimating your home value could, understandably, feel like a windfall,” added Banfield. “But if a homeowner overestimates their home value, the mortgage could need to be reworked when refinancing–possibly even requiring the owner to bring more cash to the closing table.”
