In contrast with the HPPI, the Home Value Index showed an increase of 0.44 percent in the same month. Home valuation showed a 3.38 percent increase compared to September last year. According to the report, all regions experienced an increase in annual home growth, but some more than others. The West fared better than the South at 5.77 percent and 2.77 percent respectively.
“An appraisal can vastly impact the mortgage process,” says Bill Banfield, QuickenLoans EVP of Capital Markets. “If homeowners are aware of local home values and how they are changing, it will assist with a smoother mortgage process.” According to Banfield, the appraisal alone can determine how much a buyer needs to bring to closing, as well as current equity when refinancing. The home value is also determined by buyer interest and the amount of available homes. “One of the most impactful things that could be done to achieve stability is an increase in new home building. If move-up buyers move on to new construction, it will open up starter homes for first time buyers.”
The HPPI index is unique because it provides data not previously available to appraisers. It compares the estimate that homeowners provide on a refinance mortgage application to the appraisal performed later in the mortgage process. The HVI is also unique by being the only index to view home value trends exclusively around on appraisal data from home purchases and mortgage refinances.
The full report with supporting graphs and more detail can be found here.