Zillow Homeowner Confidence Survey; For me the Cup is Half Full

Posted on May 14, 2009 by hankbailey

Zillow released its Homeowner Confidence Survey in which the headlines read, “Homeowner Confidence Shrinks; Most Americans Now Believe Their Home’s Value Has Declined.” As a real estate broker and someone who is a student of real estate, I admire Zillow wholeheartedly. They are innovative and the rest of the industry needs to take a lesson from them in everything right down to their iPhone application.

As a real estate professional however I can’t agree with the title on this news release. I know, I know, a title is supposed to drag you in so you read the piece, but I think the first sentence in their release sums it up better for me.

They state, “American homeowners have a solid understanding of what has happened to the values of their own homes over the past year.” This is where I know most real estate professionals have hoped sellers would get to in an understanding that this is not 2005-2006 anymore in terms of pricing or home valuations. I don’t know that “confidence” is lacking more than a reality check has finally set in on homeowners, especially those that are trying to sell at this time. It seems as a real estate practitioner that I have seen in the past 9-12 months a movement down on prices in a direction where buyers are willing to jump back into our market, which in a free market it should work that way. Markets correct and then things become more balanced again between buyers and sellers.

What is the perception on a market bottom? Zillow’s report gave way to hope. It states, “More accurate perceptions of the past gave way to hope for the future. Most homeowners – 74 percent – believe their home will not decline in value in the coming six months, effectively calling a bottom to their own home’s housing slide. Specifically, one in four homeowners (27 percent) think their home’s value will increase in the next six months, while nearly half (47 percent) believe their home’s value will remain the same. Homeowners were similarly optimistic when it came to predicting home values in their local markets. About two-thirds of homeowners believe home values in their local markets will increase (26 percent) or stay the same (37 percent) over the next six months.”

Regionally, as we look at the South, the report showed that almost 75% of Southern homeowners felt their homes would hold value or increase in value over the next six months, effectively calling for a bottom in the market.

Web site: http://www.zillow.com/

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