Realtors optimistic about price bottom

If homeowners have high expectations that home prices will hit bottom in the next six months, Realtors are even more optimistic, according to a survey by home valuations and listings site HomeGain.

Only 29 percent of 1,150 Realtors surveyed by HomeGain from May 6-11 said they expect home values in their market will decline in the next six months. About half (49 percent) said they expect home values will stay the same, and 22 percent were expecting values to increase.

A recent survey of consumers by HomeGain rival Zillow found that 37 percent of homeowners expect price declines in their local markets in the next six months. Two-thirds of homeowners surveyed by Zillow believe home values will increase (26 percent) or stay the same (37 percent) over the next six months.

Asked about their own property, three out of four surveyed by Zillow expected their home's value would hold its own or increase in the next six months -- demonstrating that homeowners remain "starry-eyed" about the future, since few markets are expected to perform that well, the company said (see story).

The vast majority of Realtors surveyed by HomeGain -- 84 percent -- said they believed their clients' homes had, on average, decreased in value in the last year. Only 12 percent said their clients homes had retained their value, while 3 percent said they'd increased in value.

When selling a house, clients were apt to believe their homes were worth more than Realtors' recommended listing price 69 percent of the time. Some 35 percent had a price in mind that was 10 to 20 percent greater than the Realtor's recommendation, and 10 percent were convinced their home was worth 21 percent or more than the Realtor's recommended listing price.

Buyers, on the other hand, thought homes for sale were overpriced 63 percent of the time, Realtors reported. About 30 percent thought homes were overpriced by 10-20 percent. Only 17 percent thought homes were underpriced, while 19 percent of buyers saw homes as fairly priced, Realtors reported. ...CONTINUED

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