Home Owners Becoming More Realistic

Posted on August 24, 2010

0


Home owner confidence about the value of their home has declined in the second quarter, compared to the previous three quarters of this year and last, reports Zillow.com in its second quarter real estate market report.

About 30 percent of home owners predict that values will increase in the next six months, down from 42 percent who believed that in the first quarter. More than 28 percent believe market values will fall in the next six months.

About 34 percent of homes actually increased in value in the second quarter, according to Zillow, but only 24 percent of home owners say their own homes’ values increased.

If they see signs of a recovering market, 5 percent of home owners say they are likely to put their homes up for sale.
“Home owners have become much more responsive to current market conditions than they were just two years ago, when a more typical reaction was denial,” said Stan Humphries, chief economist at Zillow.com.

“Our forecast remains largely unchanged: We’re in for an L-shaped recovery that will likely keep annualized home value appreciation very low for the next three to five years.”

Source: Zillow

Advertisements
Posted in: Buyers, Real Estate