Home values rose across the country in February, even as appraisers' opinions of values fell below those of homeowners nationwide for the first time in over a year, according to findings released Tuesday by Quicken Loans.
The Quicken Loans Home Value Index found that home values increased by 1% month-to-month and by more than 8% year-over-year, largely driven by gains in the West. Home values rose in Western states by nearly 2.5%, while in the South, the Northeast and the Midwest values barely budged.
In the company's separate Home Price Perception Index, also released Tuesday, Detroit-based Quicken Loans found that appraiser opinions were 0.13% lower than homeowner estimates in February.
The month before, the HPPI found that appraiser value stood 0.18% higher than homeowner estimates, and in February 2014 it was 2.11% higher. The last time appraiser value nationwide rested below homeowner estimates was in August 2013.
This reversal came about due to the excitement of homeowners warming to an improved economy, according to Quicken Loans chief economist Bob Walters.
"The dip in the HPPI is likely caused by a delay of homeowner perceptions," Walters said in the news release. "As the economy recovered, homeowners hadn't realized property values had improved. With the headlines of growing home prices, homeowners are catching up, but are now a bit overzealous in their estimates."
The economist added that the difference should not negatively impact refinancing or cause other problems for homeowners.
While nationwide appraiser opinions were less optimistic than homeowners' the index found that in 18 out of 27 metropolitan areas studied, this was not the case. The company singled out Baltimore and Atlanta, where HPPI values went from positive to negative, as helping to move the national average lower. The city with the lowest HPPI value is Kansas City (-3.39%), while San Jose has the highest (6.63%).
The HPPI is calculated by comparing the estimates supplied on mortgage applications by homeowners to the appraisal done later in the mortgage process. The Home Value Index, meanwhile, is based on appraisal data from home purchases and refinances. Both indexes are created using Quicken Loans' proprietary mortgage data.
