By what measure do you judge a home's value beyond looking at it and comparing it to the neighborhood? Let's compare our anecdotes: In mine the housing price is off by 100% and the home's basic properties are incorrect. In yours the value varies by 25% in some measurements. I would say the appraisals are much more accurate. And when you consider that the appraised value determines the loan amount (and thus whether the home is even sold), I would consider it a much more important metric.

ETA: And if your mention of the bubble is to suggest that my home was appraised at a higher value and is now lower to reflect the true value, I purchased my house a year ago when prices of homes were at some of their lowest points.