Indices Deliver Encouraging Signs for Home Buyers
By Quicken Loans
There's good news for your clients! The gap between homeowner and appraiser opinions of home values is shrinking. According to the Quicken Loans Home Price Perception Index (HPPI), appraisers are only rating home values 0.18% higher than homeowners are rating them. More importantly, home values are rising from coast to coast! Home values are up 1.94%.
The 0.18% gap is actually is the most favorable statistic on pricing opinions between homeowners and appraisers since September of 2013. Understanding what a home is worth is essential in real estate transactions.
Quicken Loans Chief Economist Bob Walters said this level of pricing agreement is a positive sign. "Interest rates have dropped and we have seen more and more Americans refinance their mortgage. These consumers have been watching their local housing market and realizing their home's true value more accurately than any time in the last year and a half."
The gap narrowed in over two-thirds of the metropolitan areas surveyed. Despite the consistent trend toward pricing agreement, appraisers are still rating values higher than homeowners in more than 74% of areas surveyed.
It's an encouraging trend that home values jumped 1.94% in January. Home prices are up 5.63% from this time last year, and values were up in all regions. The gains were around 5% in the South, West and Midwest. Meanwhile, the Northeast enjoyed a 9.31% leap in home values.
"The rebound from December's dip in home values shows that the economy is slowly regaining its health and finding solid footing," Walters said.
Got questions? Contact Quicken Loans at (888) 600-6942, or email AgentRelations@QuickenLoans.com for more information.
Disclaimer: Equal Housing Lender. Licensed in all 50 states. NMLS #3030. ©2015 Quicken Loans Inc. All rights reserved. Lending services provided by Quicken Loans Inc., a subsidiary of Rock Holdings Inc. "Quicken Loans" is a registered trademark of Intuit Inc., used under license.
© 2015 Quicken Loans Inc., All rights reserved. Lending services provided by Quicken Loans Inc., a subsidiary of Rock Holdings Inc. "Quicken Loans" is a registered service mark of Intuit Inc., used under license.
NAHREP advocates for affordable housing goals, access to credit
Every year, NAHREP takes a stand on a number of key policy issues which have a direct impact on the Association's ability to accomplish its mission. With these issues in hand, NAHREP members and supporters head to Capitol Hill where they take part in in-person meetings with lawmakers and members of Congress to advocate for real change in public policy.
In advance of the 2015 Housing Policy & Hispanic Lending Conference, NAHREP advocates for the following policy changes:
- Reinstitute Affordable Housing Goals for Fannie Mae & Freddie Mac: Last year the Federal Housing Finance Agency ("FHFA") proposed new and higher affordable housing goals for the GSEs that would apply during years 2015 – 2017. The proposed goals must be finalized as soon as possible in order to appropriately address the needs of first time and other underserved markets.
- Access to Credit for Homebuyers: Narrow definitions of creditworthiness make it especially difficult for minority and first-time borrowers to qualify for and obtain a mortgage. Government regulators should address market factors that are restricting access to credit for minority borrowers.
- Inventory Disposition: To ensure community development and opportunities to build generational wealth in Hispanic and other diverse communities through owner occupant homeownership, the laws, regulations and business practices associated with single family property disposition and sale should provide ample opportunity for sales to Owner Occupants BEFORE making the property available for sale to investors.
- Immigration Reform:To provide permanent legal status to the 11.2 million undocumented individuals who already live and work in the U.S. in order to fully participate in the economy, including homeownership, Congress must pass comprehensive immigration reform which should include provisions for addressing a pathway to citizenship, deportation relief, immigrant and non-immigrant work visas.