Homeowners' estimates of their property's value at the end of 2017 were closer to appraised values than at any point in the past two years, according to the retail mortgage lender Quicken Loans.

In the December update of its Home Price Perception Index, the typical appraised value was just 0.5 percent below an estimate supplied by the homeowner. This was an improvement from November, when the typical appraisal was 0.67 percent less than expected, and December 2016, when the average appraisal fell 1 percent short of a homeowner's expectation.

December marked the seventh consecutive month where homeowner estimates have moved closer to appraised value. The gap between the two was at its narrowest point since March 2015.

"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, executive vice president of capital markets at Quicken Loans. "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 values are advancing."

In each of the four geographical regions outlined by Quicken Loans, the average appraised value was within 1 percent of a homeowner's estimate. The typical appraisal was 0.24 percent less than expected in the West, 0.53 percent lower in the South, 0.68 percent lower in the Northeast, and 0.71 percent lower in the Midwest.

Quicken Loans also measures home price perceptions in 27 major metropolitan areas. In December, values were greater than expected in 20 cities. The cities where average appraisals were most likely to be more than expected included Dallas (3.17 percent greater), San Jose, Calif. (2.55 percent greater), and Denver (2.22 percent greater). Average appraisals were 2.09 percent less than expected in Cleveland, 1.91 percent lower in Philadelphia, and 1.78 percent lower in Baltimore.

In addition to the HPPI, Quicken Loans measures value changes in its Home Value Index. December's index of 105.77 marked a 0.65 percent increase from the previous month and 6.17 percent increase from the previous year. An index of 100 indicates values equal to January 2005.

"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."

The Northeast was the only region with some decrease in its Home Value Index, which fell 0.21 percent from November to 99.03. However, this figure was still a year-over-year increase of 3.5 percent.

In the West, the HVI grew 0.55 percent from the previous month and 7.42 percent from the previous year to 127.92. The index in the South stood at 107.64, up 0.39 percent from November and 6.37 percent from December 2016. The HVI of 87.21 in the Midwest was an increase of just 0.03 percent from the previous month, but 6.46 percent from the previous year.

Quicken Loans' HPPI is based on a national composite of refinance mortgage applications, where a homeowner provides an estimate for their home's value and an appraised value is determined later on. The HVI is based on appraisal data from purchase and refinance mortgages in the United States.