With the growing appreciation in home prices in the United States, homeowners often believe that their property has gained a healthy amount of equity. The latest monthly report by the retail mortgage lender Quicken Loans indicates that while homeowners had a better idea of how much their property was worth in August, they were still more likely to overvalue it than they were to undervalue it.

In the latest update of its Home Price Perception Index, Quicken Loans found that the average appraisal fell 1.35 percent short of a homeowner's expectations. This was the third consecutive month where the gap between appraisals and homeowner estimates has narrowed, shrinking from 1.7 percent in June and 1.55 percent in July.

Quicken Loans says a homeowner's perceptions of their property value can influence whether they decide to put the home up for sale, refinance their mortgage, or tap into perceived equity. These aspirations can easily be hindered if a homeowner has an inflated sense of how much their home is worth.

"Homeowners who have a better understanding of their local housing market can make more informed decisions about their home," said Bill Banfield, executive vice president of capital markets at Quicken Loans. "After all, their house is not just where they live, but one of their biggest assets."

Value perceptions varied from region to region. The typical appraisal was 1.48 percent lower than expected in the Northeast, 1.46 percent lower in the Midwest, 1.32 percent lower in the South, and 1.17 percent lower in the West.

In addition to these geographic regions, Quicken Loans looks at value perceptions in 27 major cities. Average appraisals were higher than expected in 17 cities, led by Dallas (2.9 percent higher), Denver (2.66 percent higher), and Seattle (2.17 percent higher). On average, appraisals were 3.05 percent lower than a homeowner's estimate in Philadelphia, 2.82 percent lower in Baltimore, and 2.36 percent lower in Chicago.

Quicken Loans also issues an update of its Home Value Index, in which appraised values are equal to those in January 2005 when the figure stands at 100. The national index for August was 103.98, up 0.19 percent from July and 2.64 percent from August 2016.

"While there can be some monthly variations in the data, especially as seasons start to change, the annual numbers show healthy growth across the country," said Banfield.

In the Northeast, the Home Value Index of 97.79 was down 0.58 percent from the previous month but up 0.34 percent from the previous year. The figure of 86.68 in the Midwest was an increase of 0.16 percent from July and 2.62 percent from August 2016.

The Home Value Index of 105.38 in the South was down 0.52 percent from the previous month, but a year-over-year increase of 3.77 percent. In the West, the index climbed 1.34 percent from July and 5.08 percent from August 2016 to 126.58.

The Home Price Perception Index is based on a value estimate submitted by a homeowner on a refinance mortgage application and the value determined by an appraiser later in the process. The Home Value Index is based on appraisal data from purchase and refinance mortgages.