NEW YORK ( TheStreet) -- Like many young things, the housing recovery is suffering some growing pains, as appraisals lag rising prices and make it difficult for borrowers to get loans. The problem, mortgage-data firm HSH Associates says, starts with the conservative appraisal standards implemented during the financial crisis. That is compounded by a natural lag in comparable-sales data. The result -- appraisals coming in lower than the price seller and buyer have set -- is a possibility both parties need to take into account as they enter this changing market. "While low home values continue to be an obstacle in the way of a full housing recovery, more and more markets in recent months have experienced home-price improvements," HSH reports. "Although home prices are up in some areas, many real estate agents, homeowners and homebuyers alike are frustrated that appraisals aren't keeping pace with current home-price appreciation." In places where the number of home sales remains low, appraisers do not have many recent sales to examine in establishing current values, HSH says. Relying on sales from many months earlier means using data that do not reflect recent price increases. Also, many appraisals are being done by out-of-town appraisers who do not have a feel for recent changes in the local market, HSH reports. It cites a recent survey by the National Association of Realtors that found 34% of realtors reporting problems with appraisals in the past dozen months. When the appraiser sets a value lower than the mortgage the buyer needs, the lender will deny the loan. What can buyer and seller do? First, they need to be realistic about prices. The seller, especially, should recognize that recent home price gains have been modest. People are enthusiastic about the housing market because it appears to have turned a corner -- because prices are no longer falling. That doesn't means they're soaring.