Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

MortgageAppraisals & Valuations

Homeowners’ estimates move closer to appraised home values in March

Appraised values 0.36% below homeowner expectations

Homeowners are growing closer to estimating their home’s appraised value, according to the latest Home Price Perception Index from Quicken Loans.

Homeowner estimates came in 0.36% than appraised values in March. This is a closer gap than in February, when appraised values were 0.53% below homeowner estimates.

This closing gap may be due to home prices increasing faster than homeowners can keep up with. Home values rose 1.84% nationally in March, according to the HPPI, and increased 7.64% year-over-year.

The chart below shows that since mid-2017, homeowners and appraisers have been growing closer in their home value perceptions.

Click to Enlarge

HPPI

(Source: Quicken Loans)

Owners estimate their home’s value at the beginning of the mortgage process, Quicken explained in its report. Then, later in the process, an appraiser provides their opinion of the home’s value.

“This month’s HPPI is great news for homeowners who may be thinking of selling their home, or using some of their equity,” said Bill Banfield, Quicken Loans executive vice president of capital markets. “Not only are owners’ and appraisers’ views of the housing market getting closer together when looking at the nation as a whole, but homeowners in many major areas are building equity at a rapid pace.”

And in many metros, homeowners were surprised to find their home value actually came in more than their estimate. In fact, 80% of metro areas reviewed in the HPPI showed appraisals at, or higher than, the owner’s estimate.

Click to Enlarge

HPPI

(Source: Quicken Loans)

Home equity is continuing to climb, according to the HVI – the only measure of home value change based solely on appraisal data. Regionally, the increases ranged from an increase of 5.53% in the Northeast to a jump of 9.99% in the West.

“A monthly increase in home values, after a stable report last month, shows that demand for the few available homes for sale ramped up in March,” Banfield said. “The true test will be whether more homeowners decide to take advantage of these their higher home value and provide some much-needed inventory for buyers.”

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please