What, me worry?
Home prices are sinking, but that fact hasn't sunk in with many homeowners. About half of U.S. homeowners say their home's value has either increased or remained the same over the past year, according to a survey by real estate site Zillow.com.
In fact, says Zillow, about three-quarters of U.S. homes lost value in the past year, according to their calculations.
For the first time, a bare majority -- 51% of homeowners-- said their home had declined in value in the past 12 months. Of the rest, 32% think their home increased in value in the past 12 months, while 17% said they believe their value remained the same.
The survey was taken in the first week of October. Zillow's previous survey, taken in July, found that 62% of homeowners thought their property had increased or remained the same in value.
Here in the West, 65% of us think our homes have declined in value in the last year. That percentage, while higher than the rest of the nation, also understates reality. Zillow estimates 85% of homes in the region have lost value in the past year.
-- Peter Y. Hong
There are none so blind than those who refuse to see what is clearly in front of their faces.
Just wait until the ostrich's have to put their homes up for sale due to job transfers, divorce or if they want to move to a different neighborhood or larger home. Then.................reality will set in quickly.
Posted by: JW | October 29, 2008 at 12:51 PM
When your neighbor's house lost value, it's time to buy.
When your own house lost value, well, it's the end of the world...unless you know Kal. Then, maybe you'll get invited to his party.
Posted by: MyLessThanPrimeBeef | October 29, 2008 at 01:08 PM
Forgive me, but please make the case for ANY house here in California gaining value.
Posted by: Rational Renter | October 29, 2008 at 11:09 PM
there are 2 explanations for a homes value going up in this market:
1. your house or housing market is an "inferior good".
econ refresher: http://en.wikipedia.org/wiki/Inferior_good
2. statistical sampling error: too few houses sold in your neighborhood for zillow's algorithm to get a reliable value.
check back in a few months, most will be revised downward
Posted by: Stanley | October 30, 2008 at 01:16 AM
While the market definately is not going up, Zillow sucks. They compare apples to oranges and try to make it stick.
Posted by: Inland Empire | October 30, 2008 at 08:42 AM
I've seen Zillow "zestimates" on two virtually identical newly constructed houses -- one right next to the other, built at the same time by the same builder with the same construction quality, design, amenities and lot size.
One is "zestimated" as being worth $250k more than the other one.
Go figure.
Posted by: Drew | October 30, 2008 at 10:27 AM
Have them visit this website and they will see the true value of their homes..
http://www.homepricetrend.com
Posted by: Suzi | October 31, 2008 at 04:45 PM