In this 2nd quarter press call, moderated by Peter McCullough, we heard from Realtors from across the country discuss the results of HomeGain’s second quarter REALTOR survey on home prices.
Do Realtors feel that we’ve hit the bottom? How have home values changed in the last few months? Do they think Obama’s plans are bringing the market back to life?
Listen to the brief call on HomeGain Radio to find out!:
Louis Cammarosano, General Manager at HomeGain, says a word about the survey. He points out that most surveys deal with homeowner expectations and home prices but the HomeGain survey goes straight to the Real Esate professional and asks them about they are seeing in the market based on their conversations with buyers AND sellers — and where they think home prices are headed.
In response to question 2:”On average, what do your homeowner clients believe that their home is worth?”):
Peter quoted Kathy Nissley of RE/MAX Associates in Hockessin, Delaware who said, “Many sellers are still not being realistic in the true market value of their homes. The realistic sellers that price the homes correctly are selling like hot cakes with multiple offers.”
In response to that, Realtor Lily Duncan of Lily Duncan Realty in Wichita, Kansas, where home values have remained stable, commented that if homes are “selling like hot cakes”, maybe sellers should allow the market to adjust itself upward (and maybe sellers are not that wrong).
Greta Saliger with Long & Foster in Maryland follows up saying that sellers are also in denial about what homes are worth. She thinks prices are driven in large part by foreclosures, and that dictates what homes in the area are appraised at.
In response to question 4 (“What is the average difference in price between what sellers believe their home to be worth and the amount at which you eventually list the home?”):
Mitch Ribak of eHomes Realty Network in Florida is “finding that people are finally starting to come down to about 10% to 20% of the price, more about personal reasons — which leaves homes still being less than what they think their home is worth.” Mitch also commented that he doesn’t “take a listing unless its at market value or below. We turn down 9 out of 10 listings right now. We’re running into a lot of sellers who just want to “see” if their home will sell. There is too much expense and time involved and it’s not worth it.”
In response to question 9 (“In your opinion, what impact has the Obama Stimulus package had or will have on home values this year?”):
Lily Duncan in Wichita commented that she’s seen a lot of ups and downs in the market over the past 25 years feels that “it would make a lot of sense to offer incentive to any type of home buyer, not just first-time buyers.” She added that she would also like to see it adjusted on a more regional level.
Mitch Ribak commented that he doesn’t feel that the Obama Stimulus package will affect real estate much in Florida.
Greta Saliger of the Maryland/Baltimore area said that she and her colleagues have seen a lot of home buyers come forward due to the stimulus plan. She ended by asking whether President Obama took the time to ask real estate professionals for their input.