The media tells us that the housing market has stabilized, but homeowners aren’t so sure. A recent report by Zillow.com shows that homeowner confidence has dropped in the second quarter of 2010. One-third of homeowners believe that home prices can still go lower.
24 percent of homeowners think their home has increased in value in the
past year, even though 34 percent of homes are actually worth more than
a few months ago.
Perhaps some of
the reason is because many believe that the economic recovery is
temporary. The nation as a whole is indeed teetering on the brink, with
the national debt closing in on the gross domestic product
for the first time since the Great Depression. Many economists are
predicting a second dip, and even a full-blown depression, as early as
On the other
hand, history shows that significant economic recessions and depressions
tend to result in American’s feeling less secure for decades to come.
How many of us recall the oddly frugal habits of our parents or
grandparents that were a direct result of the Great Depression? Many of
their generation didn’t even trust banks to hold their money and instead
invested their savings in jars buried in the backyard.
also showed that “27 percent of homeowners believed their own homes’
values would increase in the next 12 months, 35 percent believed they
will stay the same, 12 percent expected a decrease and 26 percent did
homeowners, including those here in Arizona, who do expect a rise in
home values, are hoping for a 10 percent jump. Northeastern homeowners
also expect that 10 percent, but the rest of the nation is coming in
closer at a hopeful 5 percent.
There are also
many homeowners who want to sell their house, but have not had any
success or just haven’t bothered. They are waiting for sure signs of
stability and rising prices to put their homes on the market.
the potential of 3.8 million new homes on the market could cause those
rising home prices to slow or even stop. The higher the inventory, the
more homes buyers have to choose from and the more sellers have to lower
their prices. It’s a buyer’s market, but most homeowners want to see a
What can we
expect? The housing market is sure to recover eventually, but that
recovery may not be as fast as many would like to see. Zillow suggests
for three to five years after “the bottom” that the housing market will
grow at a very slow rate until the inventory levels out.
If you are in worried about the housing market, give the Curtis Johnson team a call. The Curtis Johnson Team is helping individuals who are facing foreclosure and those who are seeking their dream homes.
Go to www.CurtisJohnsonRealty.com or call 1-888-Curtis-J.