Industry NewsMarkets & Economy

Owners misjudge home value trends

Survey: Perception is rosier than market realities
Published on Aug 5, 2008

Perception does not match up with reality when it comes to home prices, according to the results of a survey of homeowners released today by real estate valuation and marketing company Zillow. While about 62 percent of homeowners surveyed said they believe their home values have increased or held steady in the past year, the reality is that about 73 percent of U.S. homes lost value, according to an analysis of Zillow's second-quarter real estate market reports data, due out Aug. 12. The company created a "Home Value Misperception Index" to quantify the difference between the adjusted percentage of homeowners who believe their home values increased in the past year and the adjusted percentage of homes that have increased in value, according to Zillow data. About 75 percent of homeowners expect their home values to increase or remain level during the next six months, the survey also found, with 42 percent expecting overall values in their local market to drop and 58...

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