Homeowners and Sellers Remain Blissfully Ignorant
Half of U.S. homeowners still believe their home is insulated from the nation’s home value declines, according to the Zillow Q3 Homeowner Confidence Survey
According to Zillow’s quarterly survey of homeowner sentiment, many homeowners remain blissfully unaware of the carnage that has recently occurred in the nation’s housing market. In spite of universal consensus (Case Shiller, OFHEO, NAR) that prices are falling in almost all areas, the “Not my house”-syndrome continues to hold sway among many homeowners. Consider these findings from Zillow:
This quarter, 49 percent of homeowners said they think their own home’s value has increased or stayed the same over the past year. However, nearly three-quarters (74 percent) of homes have lost value in the past 12 months, according to preliminary analysis of Zillow’s Q3 Real Estate Market Reports, which will be released Nov. 12.
The following chart breaks down responses by region:
Homeowners In The West Slightly More Realistic
Homeowners grip on reality varies throughout the country. The perception gap appears to be the widest in the Northeast, where only 45% believe that prices have declined, when in fact 71% of all homes tracked by Zillow decreased in value. Homeowners in the West, where prices have dropped the most, seem to be more realistic. Here’s the breakdown for the western part of the U.S.
- 22% think their home’s value increased in the past 12 months
- 13% think their home’s value held steady
- 65% think their home’s value declined
Homeowner Optimism Continues
As far as the next six months are concerned 40 percent think the value of their home will decrease in the next six months. Another 40 percent believe their home’s value will stay the same, while 21 percent think their home’s value will increase. Sounds like there’s still plenty of denial out there…
