Homeowners' perception of their homes' value was consistent from July to August, staying nearly even with how appraisers viewed home values. The average appraisal was 0.28 percent lower than homeowners expected in August, according to the National Quicken Loans Home Price Perception Index. This is the same level as July, but appraisers' and owners' opinions are much closer together than a year ago when homeowner estimates were 1.35 percent lower than appraiser opinions.

While perceptions were unchanged, home values across the country rose as the summer came to an end. The National Quicken Loans Home Value Index showed appraisal values increased 1.08 percent since July and jumped 5.79 percent since August 2017.

Home Price Perception Index (HPPI)

As the nation's largest mortgage lender, Quicken Loans is well-positioned to provide data showing how homeowners perceive the value of their home. Owners tell the lender what they think their home is worth at the beginning of the mortgage process. Later, when an appraiser gives their opinion, Quicken Loans can compare these two data points.

In August, the National HPPI reported the average owner estimate was 0.28 percent lower than the value supplied by the appraiser. On a metro level, however it's becoming more likely that an appraisal will be higher than expected. Homeowners in Boston, for example, are seeing appraisals an average of 2.88 percent higher than expected. On the other side of the spectrum, the average homeowner in Chicago is overestimating their appraisal value by 1.74 percent. 

"The variance in the HPPI across the country perfectly illustrates just how localized the real estate market is and how different it can be from one city to the next," said Bill Banfield, Executive Vice President of Capital Markets at Quicken Loans. "It's important for homeowners to look at their local housing market, and their home, objectively before estimating its value. Real estate experts can help them properly estimate their home's value to make the process easier – whether they are selling, or refinancing."

Home Value Index (HVI)

The HVI, which measures home value change by appraisal data, shows a 1.08 percent monthly increase in home values – when viewed nationally – with a 5.79 percent year-over-year jump in appraisal values. All regions measured also showed growth, with the strongest in the West. There was an 8.01 percent rise in home values in the West during August. The weakest growth was in the Northeast, which had a 3.78 percent increase.

"With the summer winding down, there were less 'for sale' signs on lawns across America which left the buyers competing over these available houses and driving the prices up," Banfield said. "We are all watching closely to see when more homes will be put up for sale, balancing the markets, because the demand for housing isn't slowing down.

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.