Zillow Says Most Americans Aware Of Home Value Decline

Zillow Says Most Americans Aware Of Home Value Decline

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One of the most bitter pills Americans have had to swallow over the past year or more is the notion that the value of their homes has not only quit rising, but in some cases has dropped significantly. After seeing annual double digit sales increases for most of the past decade, home prices in many markets started to decline toward the end of 2007.

home valueReal estate agents have been having a difficult time convincing some sellers to lower their home prices in a bid to move their property as these owners have told themselves that their homes are worth more than they really are.

Zillow Surveys American Homeowners

Zillow, which is an online real estate marketplace where homeowners, buyers, sellers, real estate agents and mortgage professionals can share their information for free, recently surveyed American homeowners discovering that 57% believe that their own homes have lost value though that number is below the 76% of homes which have actually been declining in value.

Most surveyed homeowners were optimistic, believing that their homes will quit losing value this year with some expecting that prices will even increase. Zillow says that 70% of those surveyed believe that the worst has past while the remaining 30% believe that additional losses will be realized in 2009.

Quoting Dr. Stan Humphries, Zillow’s vice president of data and analytics, “It’s clear that the ‘not my house’ sentiment that was so prevalent in earlier surveys is waning, and homeowners are opening their eyes to the unfortunate reality of significant losses in home values across most of the country. That said, there’s a curious optimism for homeowners when asked about the future – most seem to believe we’ve hit a bottom and the worst has passed. Unfortunately, the data tells another story. With year-over-year home value losses continuing to accelerate, most areas of the country will see housing values get worse before they begin to stabilize.”

Check With A Real Estate Agent

For homeowners who aren’t planning to sell, refinance or take out a home equity loan or line of credit, their current home value probably isn’t effecting them all that much especially if they’re mortgage free.

But, for the person who is planning to sell a home in 2009, there is good reason for them to be aware of what their current home price is.  That value can be determined by contacting a real estate professional and having them examine comparable home sales in the area as well as seeking an independent appraisal from a trained professional.

Put together, the homeowner should have a clear, realistic picture of what their home is worth and market their property accordingly.

Of course, for many homeowners, they could be in for the shock of their lives, discovering that they are upside down with their mortgage (owing more on their mortgage than what their home is worth). In that case homeowners are faced with two choices: selling their home for less and absorbing the loss or waiting out the market until prices rebound.

Source: Zillow.com

Adv. — Do you know what your mortgage pay off amount is? Are you interested in paying down your mortgage sooner? This may be a good time to examine your home’s value by coming up with a plan to pay off your mortgage faster. Having clear ownership of your home is an aspiration for many Americans; visit SayRecession.com for tips on how to take control of your most valuable asset.

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Categories: Home Selling, Money News

Comments

  1. Ditech Home Loans
    Ditech Home Loans 12 February, 2009, 14:22

    Because of the general lack of equity, it appears that there will be a large number of homeowners who will not be moving soon, as long as they continue making their payments.

  2. Karthik | Computer and Net
    Karthik | Computer and Net 12 February, 2009, 16:12

    Most of the real estate and the market are on the price decline,and many people are feeling it hard to believe that their prices are falling.This is mainly due to the fact that,earlier to 2006-07,the prices of houses and the real estates were skyrocketing.Many bought even at such a high rate with the belief that the prices will also rise in the future.But,sadly that was not the case.The present situation looks as grave as the earlier great economic depression.

    Karthik | Computer and Nets last blog post..Entrecard Market and EC Tips

  3. Matthew C. Keegan
    Matthew C. Keegan Author 12 February, 2009, 16:59

    @Ditech — I think you have that right. Many people may simply choose to wait the market out, realizing that they’ll recoup their loans over the long haul, certainly not for the short term.

    @Karthik, the real estate bubble of the past decade has led to the housing crunch now hitting the US and other countries around the world. I hope that we’ll see some relief soon as this is taking a toll on the economy.

    I certainly hope that we aren’t on the way to experiencing the Great Depression all over again. But, all of these rescue packages being pushed by governments far and wide has me concerned.

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