The views of homeowners, and those who appraise their properties, are continuing to move closer together. Home appraisals were an average of 0.5 percent lower than what owners expected in December, according to the National Quicken Loans Home Price Perception Index. These two data points have moved closer together since November, when appraised values were 0.67 percent lower than homeowners' estimates, and far improved from one year ago when there was a full 1 percent difference in valuation.

Increasing equity continues to be another source of good news for homeowners. The National Quicken Loans Home Value Index reported the average appraisal value climbed 0.65 percent higher from November to December, and jolted ahead 6.17 percent compared to the previous December.

Home Price Perception Index

Appraisals in December were an average of 0.5 percent lower than what homeowners estimated at the beginning of the mortgage process. Although the average appraisal continues to lag homeowner estimates, the gap between the two numbers was narrower in December than it has been since March 2015. The current narrowing trend is in its seventh-straight month. While perceptions vary between metro areas, they are improving at the metro level. A negative value, which indicates that appraiser opinions are lower than homeowner perceptions, was only indicated in a quarter of metro areas measured by the HPPI.

"Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see 'for sale' signs hit front yards in the spring or when they think about accessing their equity," said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. "This is reflected in the HPPI. The housing markets that are rising quickly, like those in the West, are having appraisal values increasing above owner estimates because owners don't realize just how quickly those markets are advancing."

Home Value Index (HVI)

The HVI, the only measure of home value change based solely on appraisal data, showed promising growth. Values rose 0.5 percent from November to December, and 2017 ended on a strong note with the HVI rising 6.54 percent from January to December. The Northeast is the only region to show a monthly dip in value, but all regions reported annual growth – topping out with a 7.42 percent jump in the West.

"Homeowners received the gift of added equity this holiday season," said Banfield. "With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows."

*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.