The gap between appraised values and homeowner perceptions of their property's worth continued to narrow in April, according to the retail mortgage lender Quicken Loans.

The average appraisal fell just 0.33 percent below expectations, according to the latest update of Quicken Loans' Home Price Perception Index. This was a considerable improvement from last year, when the average appraisal in April 2017 was 1.9 percent lower than expected. It also marked the closest point to equilibrium between the values in more than three years.

"The appraisal is one of the most important, although sometimes least predictable, parts of the mortgage process," said Bill Banfield, executive vice president of capital markets at Quicken Loans. "The Home Price Perception Index is a way to illustrate the differences of opinion and these differences affect everything from the type of mortgage a borrower can get to the expectations a seller has about the proceeds available upon sale of their home."

Estimates were closest to the mark in the West, where the typical homeowner's estimated value fell just 0.08 percent below the appraised value. The average appraisal was 0.38 percent less than expected in the South, 0.41 percent lower in the Northeast, and 0.47 percent lower in the Midwest.

Quicken Loans also looks at value perceptions in 27 major American cities. In April, appraisals were higher than expected in all but five metro areas.

Values were most likely to exceed expectations in San Jose, Calif., where the average appraisal was 2.75 percent higher than a homeowner's estimate. Appraisals were 2.4 percent more than expected in Dallas and 2.23 percent higher in Boston. The cities were the average appraisal fell short of expectations included Chicago (1.68 percent lower), Cleveland (1.59 percent lower), and Philadelphia (1.37 percent lower).

Home values continued to grow in April, with Quicken Loans' Home Value Index reaching 108.09 for the United States as a whole. A figure of 100 on this scale indicates values equal to those of January 2005. The index inched down 0.05 percent from March, but was still a year-over-year increase of 6.47 percent.

The Northeast was the only region with some decrease in values, with its Home Value Index falling 1.24 percent from March to stand at 99.43. However, it was still up 2.22 percent from the previous year.

In the West, the index was up 0.53 percent from the previous month and 9.44 percent from the previous year to 133.56. The South's index of 109.87 marked a year-over-year increase of 5.86 and a bump up of 0.32 percent from March. The Home Value Index of 88.99 in the Midwest was up 0.93 percent from March and 5.81 percent from April 2017.

"The skyrocketing home values in the West is a trend with no end in sight," said Banfield. "Until home building pace picks up, in combination with more existing homes being listed for sale, affordability will continue to wane. The other regions of the country are showing annual price gains as well but at a more moderate pace. Time will tell if the slightly higher interest rates in 2018 start to slow demand or if the inventory shortage ends up being a larger contributor to price changes."

Quicken Loans' monthly reports on values and value perceptions are based on an analysis of mortgage data from across the nation. The Home Price Perception Index compares a homeowner's estimate of their property value on a refinance mortgage application to the value determined by an appraiser later in the process. The Home Value Index is based on both purchase and refinance mortgages.