1 in 5 homeowners say itâ€™s a good time to sell and 77 percent of sellers say their home is worth more than their real estate agentsâ€™ recommended selling price. Some home owners are overestimating the value of their home by up to 20 percent. Nearly 40 percent of real estate agents surveyed by HomeGain say that home owners believe their home is 10 to 20 percent higher than it really is, with another 40 percent reporting overestimates of 1 to 9 percent. Only about 6 percent of home owners underestimate the value of their home, believing it to be worth less.
Meanwhile, the majority of home buyers believe homes for sale are overpriced. 23 percent of real estate professionals say that buyers believe home prices are overpriced by 10 to 20 percent, and 36 percent say prices are inflated by less than 10 percent. About 28 percent say home prices tend to be fair. The survey found that many homes sell for less than the price at which they are listed, about 77 percent. Nearly 60 percent of real estate professionals say that the average difference between listing price and sales price is less than 5 to 10 percent.
This is very common here in the Atlanta market where owners in highly desirable areas tend to overestimate what the market will bear. Segments of the greater Atlanta market have recovered but this is not the green light for sellers to bump list prices by 10%-15%. Casual conversation with many planning to list in Spring â€™13 leads us to believe that this is going to be the case in a few areas. Of course we have agents willing to tell sellers whatever they would like to hear so if youâ€™re considering listing your home, please get an unbiased opinion to find out what your home is worth.
A FNMA survey shows respondents expect home prices to increase an average of 1.5 percent in the next year. The share who say mortgage rates will increase in the next 12 months dropped 7 percentage points to 33 percent. 19 percent of those surveyed say now is a good time to sell, marking the highest level since the survey began in June 2010. Tying the June 2012 level (and the all-time high since the surveyâ€™s inception), 69 percent of respondents said they would buy if they were going to move.
With regard to the economy overall, 41 percent of consumers now believe the economy is on the right track, up from 33 percent last month, while 53 percent believe the economy is on the wrong track, compared with 60 percent the prior month. Both the right track and wrong track figures mark the highest and the lowest readings, respectively, since the survey began in June 2010.
37 percent of those surveyed expect home prices to go up in the next year, the highest level since the surveyâ€™s inception in June 2010. 33 percent of respondents say mortgage rates will go up in the next year, a decrease of 7 percentage points since last month. Those who say now is a good time to buy dipped slightly to 72 percent.