Posted on 05/22/2010 10:32:37 PM PDT by TigerLikesRooster
Homeowners 'Overconfident' About Home Values: Zillow
By: Brittany Dunn 05/21/2010
In just one quarter, homeowners have gone from being overly cynical about the state of their own home’s value to being overly confident.
According to the Q1 Homeowner Confidence Survey conducted by Seattle-based Zillow, 50 percent of homeowners nationwide believe their own home’s value declined in the past year. But in reality, 65 percent of U.S. homes have dropped in value in the last 12 months.
This overconfidence brought Zillow’s Q1 2010 Home Value Misperception Index up to 5, a jump from -2 in the Q4 2009 index. Zillow said an index of zero indicates that homeowner perception is in line with reality, while a negative index suggests that homeowners are overly pessimistic about the value of their own home.
While homeowners were considered overly confident on a national basis, regional results varied.
The most cynical homeowners were in the West, even as home values in many California and Colorado metros have stabilized over the past year. According to the survey, just 18 percent of Western homeowners believed their home gained value over the past year, when in reality 31 percent of homes in this area have increased in value. As a result, the West posted a Home Value Misperception Index of -12.
(Excerpt) Read more at dsnews.com ...
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Zillow is the most consistently wrong source for real estate that I have come across.
I have not seen them once get a price right on a home in our market - usually Zillow shows it at a much higher price, sometimes as much as 50% too much.
It does vary from place to place but i don’t see home ‘values’ going up any time soon.
btt
Sounds like Zillow is still using an old boom years model.
They aren't going up for higher end homes until the jumbo loan market thaws out..
Based on what? Does Zillow give you an estimated price or the asking price?
Real Estate is another scam. It's an industry based on subjective reasoning all the way around.
Their concept is wrong; they can’t be right. There’s no way one website can estimate the value of every home.
Even appraisers who live in the areas they cover sometimes struggle to create the right value.
A very little considered situation for some of the recent home sales, is "rich" people leaving their over taxed states and communities for other more friendly and reasonable places to live. Most of them have the money to cash out a new home and live without a loan. Some states like North Dakota are building and booming. Their unemployment is still around 4%. "Rich" people are moving there in swarms to open business' to make those EVIL profits again.
As for Zillow....the accuracy is just about equal to the cost of the service.....ZERO.
Certainly you could have some of that going on. There are wealthier subburbs in the $419K conforming loan range. Lets say you had a $1M home in Cook county Illinois. Maybe the price got a little frothy and could sell for $750K if you could a jumbo loan. Right now that home is effectively priced at 20% down plus $419K. I don't understand how a Teton county Idaho can have a much larger conforming loan limit at $693K...
Ours is always valued at half
Real estate agents have been pumping people to jack their home prices. They aren’t getting those prices but the pumping continues.
Just checked mine and it’s at 1.124,000 it would bring about 1.3
Zillow is always way off. Actually the correct word is irrelevant.
I ‘value’ my farm. That’s why I’m working like h3ll to get her paid off so I can live here, debt free, the rest of my natural days. :)
By the time I’m ready to sell, the markets will have gotten back to normal levels. The real estate market here in The Heartland is very stable. I’ve never lost money on a house...and I’ve flipped four of them with a small farm being my eventual ‘setting down’ spot.
And if it all goes to h3ll like I’m thinking it might? I still have a roof over my head. :)
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