Home values rose in April but could not fully make up for the decline the month prior, according to data released by Quicken Loans.
The Home Value Index released Tuesday rose 0.28% across the country in April versus a 0.56% dip in March. Year-over-year, home values rose 5.54% nationwide, with the West region displaying the biggest gain at 6.58% and the Northeast the smallest at 2.39%.
Despite seeming like an improvement, Quicken chief economist Bob Walters cautioned against viewing the increases favorably.
"Homeowners that are still underwater are looking for large increases, but those increases can in fact price homebuyers out of the market," Walters said in a press release Tuesday. "Home affordability could become a worry if home value increases get too far ahead of the modest pace of wage increases, which are sitting at about 2% annually."
Additionally, Quicken reported that homeowner estimates continue to remain above appraiser opinions, according to the Home Price Perception Index. Appraiser opinions were 0.69% lower than homeowners in April versus the 0.4% difference noted the month before.
