Homeowners Less Optimistic About Housing Market In Q2

Pessimism among homeowners is on the rise, according to Zillow’s second quarter Homeowner Confidence Survey. One third said home values in their local markets have yet to reach bottom and 28 percent believed prices would drop in the next six months, up from 20 percent in the first quarter. Dr. Stan Humphries, Zillow’s chief economist, said the results weren’t surprising considering declining market conditions since the expiration of the tax credit. The barrage of bad news has homeowners becoming more responsive to current market conditions than they were in the past, Humphries said. Still, 38 percent of homeowners believed prices in their local market had reached their bottom and five percent said they are very likely to put their home on the market in the next six months if there are signs of a real-estate turnaround. More here and here.

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Homeowner Confidence Up In First Quarter

65 percent of U.S. homes declined in value last year, but according to Zillow.com’s first quarter Homeowner Confidence Survey, only 50 percent of homeowners believe their own home’s value has dropped in the last 12 months. And with 7 percent of homeowners saying they’d be very likely to put their home on the market in the next year if there are signs that the housing market is improving, that overconfidence could represent as many as 5.3 million homes put up for sale in a market already threatened by shadow inventory. Stan Humphries, Zillow’s chief economist, said we are in for a saw-toothed bottom, where inventory decreases, causing values to stabilize and some of the sidelined sellers to put their homes on the market, causing inventory to grow and values to decline again. More here.

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