Homebuyer interest 'not falling with the leaves': Quicken

Home values posted the largest month-over-month spike in over five years due to continued buyer demand, according to Quicken Loans.

The Home Value Index — based on data from home purchases and mortgage refinances — grew 6.52% year-over-year and rose 2.15% from August.

Meanwhile, appraisal values were an average of 0.49% lower than homeowners' estimates in September, a gap that's closed since the summer started, according to Quicken's latest Home Price Perception Index. However, the disparity between appraisers and homeowners was only 0.29% the year before.

"The clear news from the HPPI data is that homebuyer interest is not falling with the leaves," Bill Banfield, executive vice president of capital markets at Quicken Loans, said in a press release.

"Despite the start of the school year, and the introduction of cooler temperatures in parts of the country, home shoppers are still active. Buyer interest, combined with persistently low home inventory, continues to drag up home values. With August's jump in homebuilding, at its highest level in 12 years, there could be some hope on the horizon for home shoppers who haven't been able to find a home that is a perfect fit at the right price."

Regionally, the Midwest's home values increased the most year-over-year, with a 6.34% jump. The West followed at 5.51%, with the Northeast next at 4.52% and the South rounding out the quartet with a 4.28% gain. The West had the largest month-over-month increase at 2.93% while the South had the smallest change, with a 0.26% gain from August.

"The HPPI is a reminder to have a good grasp on your area's unique housing market before you start the mortgage process, for either a home purchase or a refinance," said Banfield. "Underestimating your home value could, understandably, feel like a windfall. But if a homeowner overestimates their home value, the mortgage could need to be reworked when refinancing — possibly even requiring the owner to bring more cash to the closing table."