Perception Versus Reality

News over plummeting home values has home owners – especially those in the Northeast – feeling a little more pessimistic than reality warrants, according to an article posted today on Banker & Tradesman. You can read the full article here. According to the article, a Zillow survey showed that just 20% of homeowners felt that their homes increased in value during 2009, but in reality, 28% of homes increased in value.  

Of the surveyed homeowners in the Northeast, 78% said they believe that their homes’ values either decreased or stayed in the same in 2009, but data shows that only 58% of homes in the Northeast stayed the same or decreased in value. 

It seems that people are realizing that right now, decreasing home values are the norm rather than an aberration. However, despite the cynicism the survey shows, three times as many homeowners believe their property values will increase over the next six months than those who believe their home values will decrease or stay the same. These beliefs may outpace performance, but it’s nice to see that people still view home ownership as a solid investment. 

By: Present Value

Tags: home value, home values, Zillow
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