Survey: Homeowners Optimistic About Future

Nearly six in 10 American homeowners believe their primary residence lost value during the past 12 months, according to the Zillow First Quarter Homeowner Confidence Survey. Based on its own studies, the Seattle-based firm states 80% of homes across the country lost value during the past 12 months. Additionally, 18% believe their home gained value during that time frame, and 22% believe its value remained the same. That resulted in a Zillow Home Value Misperception Index of five, which is the lowest it has been since Zillow introduced the index in the second quarter of 2008. This is down from 10 in the fourth quarter of 2008. A Misperception Index of zero would mean homeowners' perceptions' were in line with actual values. Approximately three-quarters of those surveyed felt their home would not decline in value in the coming six months, while 27% think their home's value will increase; nearly half (47% percent) believe their home's value will remain the same. Stan Humphries, Zillow's vice president of data and analytics, said, "While homeowners are now more realistic when looking backward, they are still pretty starry-eyed when looking forward with three out of four homeowners believing that their own homes' prices will increase or be flat over the next six months. Unfortunately, there are few markets we expect to perform this well." He added one-third of survey respondents are poised to sell at the first sign of stabilization. This could bring new inventory into the market and keep home prices down.