BluefoxToday blog : Zillow study reveals a more realistic homeowner

Zillow study reveals a more realistic homeowner

It has been long time coming. The present housing and mortgage convulsion has been tough on everybody, spare none. Mortgage borrowers find it hard to get approved, thanks to ever-tightening underwriting guidelines. Tenants living in rental homes are being evicted when the landlord gets foreclosed on. The most drama, though, has been endured by homeowners who have been watching helplessly as their property values are on a steady slide south. Some areas, like Las Vegas, numerous California communities and much of Florida, have been hammered while others have suffered smaller declines.

During the recent past many home sellers have been slow in accepting the unpleasant fact that they can't get for the house anything close to what it was worth three-four years ago. They were in denial, as they say.

But now they are coming around in increasing numbers to face the cold truth. Zillow.com ran a study in the fourth quarter of 2008 called Q4 Homeowner Confidence Survey. According to it 57% now think that the price of their home dropped in 2008, when as recently as in the second quarter only 38% believed so. The significance is that they are starting to buy into the value loss and as a result will price listings more realistically than before. In a small way this will help move inventory faster and play a positive role in the current real estate correction process. Anything to push it along is good.

The study does mark an improvement, but there is still further to go before everybody is on board. Zillow's Q4 Real Estate Market Reports states that 76% of homes in the country experienced  a value decrease in 2008. So, there is a gap that needs to be closed. Obviously the reality is beginning to sink in, although there still are holdovers that just won't let go.  

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 8 commentsEsko Kiuru • February 12 2009 09:15PM

Comments

This is good news to hear. Hopefully this will alleviate some uncomfort when you tell a home seller the true value of their home and they look at you like you have two heads. If a home seller is really interested in selling they should take your expert and professional opinion.

Posted by David Width Jr. almost 10 years ago

Yea, I am glad people are becoming more realistic but I'm afraid there is still a marked difference between the current market values and how much people think (hope?) their home is worth.  By the time they realize how much their homes are actually worth, hopefully prices will start stabilizing.  =)

Posted by Jenn Neumann Deer, Surfside Beach Real Estate (RE/MAX Southern Shores) almost 10 years ago

I've noticed that buyers are being more reasonable too, but they are still wanting to negotiate and getting the best deal possible but not something for nothing. 

Posted by June Piper-Brandon, Piecing Dreams One Home at a Time (The Traczyk Team at Remax New Beginnings ) almost 10 years ago

Esko it has been a long time coming in Sellers getting realistic about the values of their homes.  Even though no Seller wants to here about lower price it is a fact of life.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 10 years ago

David,

Good step forward for the real estate market.

Posted by Esko Kiuru almost 10 years ago

Jenn,

Unfortunately there still are some stubborn sellers.

Posted by Esko Kiuru almost 10 years ago

June,

True, some buyers expect a bargain and then some.

Posted by Esko Kiuru almost 10 years ago

George,

It's amazing how long it has taken for many to live in a housing market reality.

Posted by Esko Kiuru almost 10 years ago

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