We may think we have a firm grasp of our market’s value, but new research suggests that’s not the case.
Houston homeowners undervalue their listings by 3.58 percent, at least compared to what certified appraisers judge as the value of the property.
That was the finding of Quicken Loans’ latest Home Price Perception Index (HPPI), which compares appraiser opinions in metro-area housing markets with homeowner estimates. Nationally, appraiser opinions were 0.40 percent below those of homeowners, down from March of last year, when appraisers valued properties 2.16 percent higher than homeowners.
Our graph below shows how the HPPI has changed from March 2014 to March of this year; a positive HPPI means that appraisers value properties more than homeowners, while a negative HPPI means they value it less:
| Metro Area | HPPI – March 2014 | HPPI – March 2015 |
| Atlanta | -1.45% | -0.49% |
| Boston | 0.43% | 2.04% |
| Chicago | 1.78% | -0.63% |
| Houston | 3.34% | 3.58% |
| Miami | 6.65% | 1.26% |
Houston’s marketplace has been remarkably consistent, and in a manner that contradicts the national average. A year ago, appraisers were valuing Houston property 3.34 percent higher than homeowners were – meaning that homeowners, likely as a result of the downturn, were still undervaluing what their property was really worth.
Now, though, with low inventory pushing Houston home prices higher and higher, appraiser opinion has not wavered one bit; indeed, it will be interesting to see where the HPPI trends during the spring buying season.