Homeowners still don't see eye-to-eye with those who appraise their homes. Appraiser's valuations were 1.14 percent lower, in September, than what owner's expected – according to the National Quicken Loans Home Price Perception Index.

Even though home values may not have risen to the level owners expected, they kept rising. Quicken Loans' Home Value Index, the only measure of home value change based solely on appraisal data, showed home values increased 0.44 percent from August to September, and jumped 3.38 percent since September 2016.

Home Price Perception Index

There was an average of 1.14 percent difference between the appraisal and the homeowner's estimate of value in September – with the appraiser's opinion falling below that of the homeowner. However, the trend is positive. September was the fourth consecutive month the gap between the two perceptions narrowed, as perceptions moved closer to equilibrium. On the other hand, there is still a wide variety of home value perceptions across the country. From Dallas, where appraisals are an average of 2.87 percent higher than expected, to Philadelphia, where the average appraisal is 2.89 percent lower than what the owner thought it would be.

"An appraisal can vastly impact the mortgage process. This number alone can impact how much a buyer needs to bring to closing, or the current equity a homeowner has when refinancing," said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. "If homeowners are aware of local home values and how they are changing, it will assist with a smoother mortgage process."

Home Value Index

Home values continued their ascent in September. On a national level, appraisals rose 0.44 percent from the previous month. Even more impactful, the average home valuation was 3.38 percent higher than the same time last year.  Regionally, all areas showed annual home value growth, from 2.08 percent in the South to 5.77 percent in the West. Monthly, however, the South did have a 1.33 percent drop in September.  

"Home values are highly impacted by the balance of buyer's interest and the volume of available homes. Currently this is highly tilted, with a lack of home inventory – leading to rising values," said Banfield. "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."   

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.