Homeowners Confidence In Their Homes’ Value Drops

Dennis Norman

American homeowners’ confidence in their own homes’ values falls to lowest level in almost two years

According to the Zillow 4th quarter, 2009 Homeowner Confidence Survey, American’s aren’t feeling so good about the value of their homes, and, in fact, just one in five (20 percent) believe their own homes’ values increased during 2009. What’s interesting here is, according to Zillow, 28 percent of all homes increased in value, meaning that almost a third of the homeowners with homes that increased in value don’t think so.

Even though the confidence level in this report is the lowest in seven quarters, homeowners continue to be optimistic about the future with 38 percent believing their homes’ values will increase in the next six months.

Other highlights from the survey:

• For the first time since the survey was first done in the 2nd quarter of 2008, homeowners were overly cynical about the values of their own homes, with a Misperception Index of -2 (an INdex of 0 would indicate homeowner perceptions are aligned with reality; a negative index indicates they are over cynical)
• Home are more optimistic about the future: Fewer than one in six (14 percent) believe their own homes’ value will decrease in the next six months.
• Homeowners in the Northeast and West were the most cynical about the performance of their own homes’ values in the last year, with Misperception Indexes of -14 and -5, respectively.

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