Homeowners know it’s tough out there, as evidenced by the latest Harris poll of homeowner confidence.
Homeowners are more pessimistic now about the future of home values than they have been in the past three quarters. More than 28% think home values in their local area will fall in the next six months. That’s nearly a 10% jump from the first quarter of the year. There was also a 12% drop in the number of homeowners who think home values will increase in the next six months. As to what happened to their home values in the past year? Only 24% think their home value increased, when in reality it was 32%. “The shift isn’t much of a surprise. Homeowners have been socked over the heads by dire news about their real estate markets for close to four years now. Yes, it took some time for perception to catch up with reality, but it’s clear how in-tune homeowners now are to news about the housing market.”