Real Estate Agents Cautious on Direction of Home Prices
HomeGain®, one of the first websites to provide free instant home values, today announced the results of its nationwide home prices survey of over 1,400 current and former HomeGain members.
The results of the HomeGain First Quarter 2010 Home Prices Survey indicates that the vast majority of real estate professionals nationwide believe that home prices will decrease or stay the same over the next six months.
General Manager at HomeGain, Louis Cammarosano, stated in the March 23rd press release: “In the first quarter survey many real estate professionals expressed concern over five factors that could potentially impact home prices adversely: rising interest rates, expiration of the home buyer tax credit, persistent unemployment, continued foreclosures and the release of shadow inventory held by the banks.”
Texas real estate professionals appear to be the most optimistic about the direction of home prices in their state, while those in Minnesota appear to be the least optimistic.
Top 10 States Where Real Estate Agents and Brokers Think Home Prices Will Go Down In the Next Six Months:
- Minnesota (82%)
- Oregon (65%)
- Illinois (54%)
- Utah (50%)
- New York (44%)
- New Jersey (44%)
- Nevada (43%)
- Michigan (42%)
- Connecticut (42%)
- Washington (35%)
Top 10 States Where Real Estate Agents and Brokers Think Home Prices Will Go Up in the Next Six Months:
- Texas (41%)
- Massachusetts (38%)
- California (37%)
- Nevada (36%)
- Idaho (31%)
- Colorado (31%)
- Alabama (25%)
- Tennessee (25%)
- Arizona (23%)
- Indiana (22%)
We also asked real estate professionals of whether they approved Obama’s performance as President. Fifty-eight percent disapproved while 42% approved. Forty percent “strongly disapproved” of the President’s performance. A comparison with the Rasmussen Daily Presidential Approval Index during the same time period (March 3-10) shows the President’s disapproval rating between 53-56%.
The results of the survey also show a continuing disconnect between what home buyers and sellers think homes are worth. Sixty-three percent of potential home buyers think that homes are over priced with only 21% believing that homes are fairly priced.
Seventy-seven percent of home sellers believe their homes are worth more than their agents’ recommended selling price.
The survey was conducted from March 3-10.
The first quarter 2010 regional results are available by clicking here.
Questions and National Results:
- Have home prices increased, decreased or stayed the same in the last year?
- On average, what do homeowners believe that their home is worth?
- How do buyers feel that homes for sale are priced?
- What is the average difference in price between what sellers believe their home to be worth and the amount at which the home gets listed?
- What is the average difference in price between what a home is listed at and what a home sells for?
- In the next six months, will the values of homes in your market increase, decrease or stay the same?
- What percentage of homes for sale are foreclosures in your area?
- What is the average home price in your area?
- What percentage of your clients are first-time buyers?
- How do you as a Realtor think Barack Obama is performing in his role as President?