Fifty percent of surveyed real estate professionals nationwide expect home values to decrease over the next six months; Sixty-five percent disapprove of Obama’s performance as President.
HomeGain, one of the first companies to provide free instant home valuations online, announced the results of its nationwide second quarter 2011 home values survey. Over 750 real estate agents and brokers and over 2,600 homeowners were surveyed. We also released the regional results of the second quarter 2011 HomeGain home values survey.
Most real estate professionals and homeowners continue to expect home values to decrease or stay the same through the middle of the year. Fifty percent of agents and brokers and forty-two percent of homeowners think that home values will decrease over the next six months.
In the first quarter 2011 HomeGain National Home Values Survey, thirty-nine percent of agents and brokers and 30 percent of homeowners thought that home values would decrease over the next six months.
Thirty-eight percent of real estate agents and brokers and 43 percent of homeowners think that home values will remain the same in the coming six months.
Twelve percent of real estate professionals expect home values to increase in the next six months, down five percent from last quarter. Fifteen percent of homeowners expect home values to increase in the next six months, down nine percent from last quarter.
According to surveyed agents and brokers, 77 percent of homeowners believe their homes are worth more than the recommended agent listing price. In contrast, 67 percent of home buyers believe homes are overpriced.
“The current survey reflects that real estate professionals are resigned to accepting a market with declining prices being the norm rather than the exception. The past few years have been particularly harsh on the real estate industry and the majority of real estate professionals don’t expect much improvement in the coming six months.” said Louis Cammarosano, General Manager of HomeGain.
Forty-six percent of agents and brokers surveyed indicated that they “strongly disapproved” and 19 percent “somewhat disapproved” of Barack Obama’s performance as President, earning him a 65 percent disapproval rating, tying the disapproval rating of agents and brokers surveyed in the second quarter last year. Last quarter the President had a 64 percent disapproval rating among agents and brokers.
Thirty-nine percent of homeowners “strongly disapproved” and 17 percent “somewhat disapproved” of the President’s performance, earning him a 56 percent disapproval rating. The President had a 58 percent disapproval rating last quarter among surveyed homeowners with 39 percent “strongly disapproving”. The Rasmussen Daily Presidential Approval Index taken during the same period as the HomeGain Second Quarter 2011 Home Values Survey indicated that the President’s average disapproval rating was 51 percent with an average of 36 percent “strongly disapproving” of his performance.
Below are the top states where real estate professionals and home owners think home prices will rise and fall over the next six months.
Top 10 States Where Real Estate Agents and Homeowners Think Home Prices Will Go Up in the Next Six Months:
Top 10 States Where Real Estate Agents and Homeowners Think Home Prices Will Go Down In the Next Six Months:
Top 10 States Where Real Estate Agents and Homeowners Approve of Barack Obama’s Performance as President:
Top 10 States Where Real Estate Agents and Homeowners Disapprove of Barack Obama’s Performance as President:
The survey was conducted from June 2-10, 2011.
View all prior HomeGain national and state home prices surveys.
The second quarter 2011 regional results are available by clicking here.
Set forth below are the results of the second quarter 2010 and 2011 national home prices survey as well as the results of the first quarter 2011 survey. Also set forth below for selected questions is the national home owner response data for the second quarter of 2011. Click on each question to see complete results:
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 think Barack Obama is performing in his role as President?
Commentary From Question 1 — Have home prices increased, decreased or stayed the same in the last year?
“The market is still showing some signs of decline, but inventory is moving quickly.”
“On average home prices on LBI have remained fairly consistent and have even shown some signs of rising. When a realistic buyer and seller come together a good deal can be made for both parties.”
“I think we have bottomed.”
“It is getting much easier to do my job now that things are stable. However, if inventory keeps shrinking this will create upward price pressure.”
“Even with prices stable, interest rate increases will offset any price declines.”
“The bank foreclosure backlog is keeping prices down and making buyers think prices will drop.”
“Short sales and repos are still negatively impacting the market.”
“The market here is stable. Values remain the same but in some cases, based on demand, are going up slightly and most are being affected by the number of foreclosures on the market!”
“Here in the Bluegrass, because of our business diversity and low unemployment, our housing market has held up fairly well!”
“San Francisco is unique in that we have more Condos on the market than Single family homes. Average 1/1 sold condo is $480k, down from a high of $560k in 2007, while single family 2/1 average is $545k, down from a high of $755 in 2007.”
“The Maryland housing market appears to be slightly on the rise. Houses actually appear to be over-priced; however, the market does appear to support the prices.” – Homeowner feedback
“I’m in a condo with 140 near-identical units. I paid $80k in 2001. Sale prices recently have been in the 20s and 30s.” – Homeowner feedback
“I purchased my home in 2007 for $204,000. My same model has been sold in my neighborhood for $119,000. So disappointing. The market is terrible. TERRIBLE.” – Homeowner feedback
“Unbelievable. We have decreased home values and higher taxes. Why?” – Homeowner feedback
“My condo has had a decline of 42% in 5 years.” – Homeowner feedback
“Hopefully the value of my home will stop dropping because I have lost about 60 % value in 2 1/2 years.” – Homeowner feedback
Overall, 77% of home sellers believe their homes are worth more than their agents’ recommended selling price.
Commentary From Question 2 — On average, what do your homeowner clients believe that their home is worth?
“I feel my home value will stay the same due to the improvements I have made. Unfortunately these should have increased the value.” – Homeowner feedback
“The government keeps encouraging us to refinance. How can you do that if your house is worth less than you owe on it? And how do you hire a realtor when you can’t even afford to pay off the mortgage after they take 7%?” – Homeowner feedback
Overall, 67% of surveyed agents and brokers indicated that their home buyer clients think homes for sale are overpriced.
See regional results
Commentary From Question 3 — How do buyers feel that homes for sale are priced?
“St. Augustine has not suffered as the rest of the State or Country. Out-of-towners are shocked when they learn they can’t buy property 50 cents on the dollar.”
“Many buyers still believe values are dropping and make low offers. That market ended over 12 months ago. Competition for homes (excluding short sales) under $200K is fierce. DOM is down and offers that are more than 5% below the list price usually don’t stand a chance.”
“This market offers sellers an opportunity to get out of the expense of carrying these second homes that they are not using and buyers are able to enjoy buying power at all time low prices and interest rates.”
Commentary From 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?
“Agents need to understand that sellers are still in control of the property listing price and can only advise their clients.”
“Buyers have little motivation because there is no fear of loss. Sellers can create urgency by presenting their home in the best possible manner (staging) and valuing pricing upfront.”
“I am in a situation where the value of my home is now lower than what I owe on it due to the above average number of foreclosures on my street and in my area. Very disappointing as I can now afford a larger home, but cannot move.” – Homeowner feedback
“Because a neighbor listed their home approximately $25,000.00 below market for a quick sale, it effected all other homes in the area. I question this logic, since there may have been other reasons for listing this home at such a low price. None the less, the neighbors have suffered and we are waiting for the values of our homes to come back up.” – Homeowner feedback
Overall, nationwide, agents indicate that 91% of homes sell for less than the price they are listed at.
Commentary From Question 5 — What is the average difference in price between what the home is listed at and what the home sells for?
“Based on April market activity, many REO properties have been receiving multiple offers and sale prices above the list price. I believe this is the first sign of the recovery we have been waiting for.”
“When priced CORRECTLY there is less than a 5% discount but homes are often listed much too high initially.”
“Most sellers I’ve encountered try to sell and when they can’t get the price they want, they just decide to stay put.”
“Sellers want to get as much as possible for their homes while today’s buyer wants to spend as little as possible. I do believe we have finally hit the middle ground and are seeing the market make a turn for the better.”
“Your home owns you, you do not own your home.” – Homeowner feedback
Overall, the majority of agents and brokers think home prices will decrease in the next six months.
Commentary From Question 6 — In the next six months, will the values of homes in your market increase, decrease or stay the same?
“Until our government helps to improve the housing market, (adding jobs for example) home values will continue to decline.”
“I think we may be at the bottom or will be by the end of 2011. Hopefully.”
“There is no consistent price stabilization yet. Home prices are still very dependent on location, location, location.”
“I see prices decreasing and many more multiple offers.”
“Home values will continue to decline for at least the next 12 months, maybe more.”
“With the exception of few local markets, prices will drop nationally in 2011.”
“The Houston, TX Metro area has a strong and diverse job market. Our home market is STRONG. Appreciation is a steady 2-5% yearly even with foreclosures & short sales a big part in the market.”
“In most parts of this country it will take four to five years to recover.”
“I think we are going to see a double dip in the real state market and unless the job situation is improved and consumer confidence is back we will see no improvement in home sales.”
“I’m hoping home values will stay the same in the next 6 months, but I really don’t know that they will. It’s scary.” – Homeowner feedback
“I expect that home prices will continue to decline. However, they will stay close to today’s prices. – Homeowner feedback
“With unemployment on the rise, the housing industry will no doubt continue to be on the decline.” – Homeowner feedback
“The price of homes will continue to decrease until the flow of foreclosures cease. President Barack Obama inherited an unimaginable task of reigniting a country buried in debt, recession and unemployment. He should receive applause from the bulk of Americans and Corporate America who benefited from his administrations decisions and legislation.” – Homeowner feedback
“Home values will not improve until: 1) banks approve more short sales 2) banks put REO’s on the market 3) Congress stops trying to regulate everything.” – Homeowner feedback
“Current residential housing values will not significantly increase in the next year due to availability of foreclosed, financial institutional owned empty housing that will be slowly induced into the housing sales markets.” – Homeowner feedback
“Things should start to improve after the 2012 elections.” – Homeowner feedback
“I think home prices have stabilized and the value of homes will increase in the future.” – Homeowner feedback
Agent Commentary From Question 7 — What percent of homes for sale in your area are foreclosures?
“Based on all current listings on the MLS at the time of this survey, I was quite surprised to learn that out of 156 active listings, only two were foreclosures. The downtown market is still as hot as ever!”
“Why are lenders so difficult to work with? Why do lenders reject a short sale and later the home is an REO?”
“Unfortunately, our situation has come to pass because of one reason; greed. This has brought down other civilizations in the past and it will bring us down if we don’t change the way we think and act.”
“I am selling more houses that are not foreclosures or short sales. Sales have been strong and their is a slow down of foreclosures.”
“Until the foreclosures slow considerably, we won’t see a housing market recovery. The foreclosure sales are continuing to bring home values down.”
“I have a FICO score of 750 but a strategic default on my mortgage is starting to look like the most logical financial solution.”" – Homeowner feedback
Agent Commentary From Question 9 — In the past three months, what percentage of your clients were first-time buyers?
“In the Columbus, Ohio market, values are still struggling due to the short sales and foreclosures. Great interest rates are still attracting the First Time Buyers who are getting some amazing deals on homes.”
“The Saint Louis MO market is alive and well. While the number of transactions is down, there remains 80% or so of the regular number of buyers buying homes. But people still need houses!”
“Lending has become extremely conservative, no programs for 1st time buyers and sellers are losing alot of their equity in this market, if they can even sell, as most sellers are upside down.”
“Buyers listen to CNN and other network news, they hear these numbers, and they think it must be so locally, and nothing can be further than the truth.”
“I see 6 years of pent up demand, the only thing holding it off is the current govenment and banks too afraid of lending.”
Overall, 65% of surveyed real estate agents and brokers disapprove of President Obama’s performance.
Commentary From Question 10 — How do you think Barack Obama is performing in his role as President?
“Obama needs to wake up and start funding loans to higher wage earners. He’s treating well to do buyers are if they are FHA buyers, and FHA buyers as if they are well to do.”
“Obama came into office at the climax of what was almost the apocalypse of the United States – financial, foreign military involvement, and domestic policy issues. It is unrealistic to think that ANY president could have us recover in less than 3 years.”
“Any time a president does not realize that to bring the economy back means jobs must be created is failing in all categories. He is the worst president in history.”
“Unemployment is the piece of the puzzle that continues to hold our country back. The current administration MUST focus on the #1 problem. Without jobs, the real estate market will continue to flounder, no way around it.”
“Obama inherited this mess from the banks and Wall Street!”
“The next election needs a major overhaul with real estate market as big ticket item.”
“I think considering the mess that Obama got and the lies and accounting scams by the banks that are still happening, he is doing well. Banks need to process short sales in 2 months.”
“The bank bailouts were a major failure. Money would have been better spent reducing the loans that were owed and renegotiating them so that owners could have stayed in their homes. It would not have depressed the overall market so dramatically.”
“He didn’t start the down prices, Bush did!”
“I’m very disappointed that the banks got bailed out but very few homeowners were helped. I’m also disappointed that none of those who engineered the financial crisis have been prosecuted.”
“Barack Obama needs to VETO the QRM proposal as it will further stifle the US Housing Market!”
“The pendulum has swung too far the other way. Congress is trying to make it impossible to qualify for a loan with over-regulation. We need private investors buying mortgage debt so markets can stabilize.”
“Home prices dropping is not Obama’s fault, it is because the job market overall. The nation’s deficit. We must reduce the budget by, first, decreasing the defense spending by 25%. Those stupid government officials in Washington may not do that. If you do not have money, you have to give up the idea of being a world policeman. Because, USA is not qualified economically.” – Homeowner feedback
“To blame President Obama for the financial chaos we are experiencing is ludicrous. We are all responsible for our greed.” – Homeowner feedback
“The present economy speaks for itself. The recovery is not in the interest of the leadership of the Obama administration.This will influence my future vote.” – Homeowner feedback
“The GOP is trying to balance the budget on the backs of the working class and senior citizens while giving breaks to big business and corporate executives. The working class is mad.” – Homeowner feedback
“The housing mess was created by greedy bankers, realtors and investors. Obama has nothing to do with it. Banking dept. should of been more vigilant.” – Homeowner feedback
“I strongly believe that the Obama Stimulus plan would work if the banks cooperate.” – Homeowner feedback
“Obama has destroyed this country as he tries to move it to a Muslim country.” – Homeowner feedback
“Politicians suffer from the delusion that they can control the economy. They can do things to screw it up but can rarely do anything to make it suddenly get better.” – Homeowner feedback
“If I were blaming presidents for the home value crash, I’d point my finger at George W. Bush. However I really blame de-regulators, and the financial industry for the international speculation on mortgages. Why are none of them in jail?” – Homeowner feedback
“Not Obama’s fault Bush got our country the way it is, as well as greedy banks and people who bought homes that they couldn’t afford.” – Homeowner feedback
“I know Obama bashing is all the rage, esp. among small businesses, but, remember, BUSH (who I voted for both times):
A. Got us into both Afghanistan AND Iraq, accounting for a big chunk of the Federal debt
B. Initiated the first huge spending bill to keep the banking system going before Obama took office.
Just because the bill has come due on Obama’s watch doesn’t make it all his fault.” – Homeowner feedback
“If Obama is re-elected, more people will be losing their homes and the economy will have a chance to tank all the way.” – Homeowner feedback
“Much of our problems stem from Congress more than one man.The President can do very little on his own if Congress does not fund it. Congress did not do its job under George Bush. We cannot continue to borrow and spend and keep increasing the debt. We must find a way to live within our means. We cannot afford to do everything for everybody. We must set priorities and make choices.” – Homeowner feedback
*Regions are divided as follows:
- Northeast: Maine, New Hampshire, Massachusetts, Vermont, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware, Maryland and West Virginia
- Southeast: Virginia, South Carolina, North Carolina, Georgia, Florida, Alabama, Mississippi and Tennessee
- Mid-West: Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, North Dakota, South Dakota, Nebraska, Wyoming, Colorado, New Mexico, Texas, Oklahoma, Kansas, Louisiana, Arkansas and Missouri
- West: Alaska, Hawaii, California, Washington, Oregon, Nevada, Arizona, Utah, Idaho and Montana
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As a Realtor in Orange County CA I don’t see home values going up any time soon. I think home values will continue to decline. For homes in the millions I see a good percent decrease. For homes in the $400,000 and down I don’t see much movement.
June 20th, 2011 at 7:43 am
Thanks for taking the time to write this article. I agree that we will be in a recovery period for some time. Both residential and commercial properties have been hit hard by this downturn.
June 28th, 2011 at 1:17 am
Sure looks like homeowners are more “optimistic” than real estate professionals. I think most homeowners are still wearing rose-colored glasses, which means a lot more education is needed.
July 24th, 2011 at 1:39 pm