Despite the vast amount of information available on today’s housing price trends, remarkable numbers of homeowners across the nation have no idea of the value of their homes, nor do they know whether that value is moving upward or downward.
On a national basis, according to the Seattle Post Intelligencer, 49 % of those people surveyed thought that the value of their home had decreased during the last year, but Zillow.com says the figure is more like 72%.
When it comes to optimism, Reuters reports that homeowners in the western region of the nation have more of it. When asked about their home values, 28% of those surveyed thought home valued had increased. Unfortunately, according to a Zillow.com, only 17% of homes in the area had increased in value.
More pessimistic were those in the Northeast, the majority of whom reported that their home values had fallen. Only 20% believed that values had risen. The real numbers, however, should give them hope for the future, because Zillow.com says values are up in 31% of homes in that region.
Residents of the Midwest and the South, where homes prices have taken a beating, evidently are overly optimistic in their beliefs about home values. While the majority of homeowners surveyed think their values are up, Zillow.com indicates that home prices have increased for 8% of homes in the Midwest and 15% in the South.
However, according to Lawrence Yun of the National Association of Realtors, prices of homes across the board should rise approximately 4% during the next year. This is based on a prediction that sales of existing homes will continue unabated at their rapid pace.
Currently, home sales stand at 5.01 million for 2009, which marks a 2% increase over last year. Sales are projected to rise by 13.6 percent to a total of 5.69 million for next year.
New home sales total 397,000 this year, and they are expected to increase to 549,000 before the end of 2010. Housing starts this year total almost 564,000 units, including multifamily units, and those numbers are expected to increase to 752,000 during 2010.
These sales increases are driven by a record number of first time home buyers - 47% this year, even higher than the 41% in 2008, and far beyond the low of 36% in 2006. Many economists feel this buying and building surge has been driven by the home buyer tax credit and its extension until April, 2010.
Nevertheless, this surge in sales, and the optimism that it has ignited, prompted 31% of homeowners that Zillow.com surveyed to say they are very likely to consider selling their homes if the economy continues its turn around. At that point their belief in whether the value of their home has increased or decreased will actually be tested.
Written by Marc Jablon, Realty Associates
marcjablon@yahoo.com / 561 / 213 – 6139
www.marcjablonhomes.com/
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