Reality for Homeowners

Seems that reality (not realty!) is setting in for many homeowners.

More than 57 percent nationwide now believe their own home lost value in 2008. That’s significantly more than the 38 percent who believed their home’s value was declining in the second quarter of last year, according to a newly released survey.

But, the survey noted, there are still some living in denial. In reality, 76 percent of all U.S. homes lost value in 2008, according to a Zillow real estate analysis.

“It’s clear that the ‘not my house’ sentiment that was so prevalent in the earlier surveys is waning and homeowners are opening their eyes to the unfortunate reality of significant loses in home values across most of the country,” said Stan Humphries, Zillow vice president of data and analytics.

And optimism abounds. When asked what the near future will bring for their homes, most appear to believe the worst is over. More than two-thirds (70 percent) of homeowners believe their home’s value will either increase or stay the same in the first six months of this year. Just 30 percent believe it will decrease. That’s down from the third quarter, when 57 percent said they believed values in their local market would decrease in the next six months.

The survey found that those in the Northeast are the most realistic, with 58 percent believing their home’s value declined in 2008. Southerners’ perceptions were farthest from reality, with 47 percent saying their home’s value was down last year.

What do you think? Are you a homeowner? Do you believe your home lost value in 2008? And do you think the worse is over? Or will your home see further decreases in value in 2009? We’d love to hear your comments and opinions. Just click the comment link below and tell us what you think. Your Email address will NEVER be published at our site.