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.
Real 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
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