Ninety percent of surveyed real estate professionals nationwide expect home prices to decrease or stay the same over the next six months; Nearly half “strongly 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 2010 third quarter home prices survey based on the responses of over 1,100 current and former HomeGain members and 2,600 homeowners.
Real estate professionals and homeowners soured on the direction of home prices in the third quarter. Forty-eight percent of agents and brokers and 33 percent of homeowners think that home prices will decrease over the next six months. This reflects an increase in the percentage of real estate professionals and homeowners who expect a decline in home prices from the second quarter HomeGain home prices survey. In that survey 33 percent of agents and brokers and 23 percent of homeowners expected home prices to decrease over the next six months. Forty-two percent of homeowners, real estate agents and brokers think that home prices will remain the same in the coming six months.
Only 10 percent of real estate professionals and 18 percent of homeowners expect home values to increase in the coming six months. The results are similar to a recent Rasmussen poll of homeowners that found only 15 percent expect home prices to rise over the next year.
Seventy-nine percent of homeowners continue to believe their homes are worth more than the recommended agent listing price, up from 77 percent last quarter.
Sixty-nine percent of surveyed agents and brokers indicated that their home buyer clients think homes for sale are overpriced, up from 61 percent last quarter.
Real estate professionals and homeowners are taking a far more negative view on the direction of home prices citing current high inventory levels, continued foreclosures, the expiration of the tax credit and the general state of the economy. There also continues to be an increasing disconnect between what homeowners and buyers think homes are worth.
Forty-nine percent of agents and brokers surveyed indicated that they “strongly disapproved” and 18 percent “somewhat disapproved” of Barack Obama’s performance as President, earning him a 67 percent disapproval rating versus the 58 percent disapproval rating of agents and brokers surveyed in the third quarter last year. Last quarter the President had a 65 percent disapproval rating from agents and brokers.
Forty-four percent of homeowners “strongly disapproved” and 17 percent “somewhat disapproved” of the President’s performance, earning him a 61 percent disapproval rating. The President had a 56 percent disapproval rating last quarter among surveyed homeowners with 44 percent “strongly disapproving”. The Rasmussen Daily Presidential Approval Index taken during the same period as the HomeGain home prices survey indicated that the President’s average disapproval rating was 54 percent with an average of 43 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 Down In 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 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 September 7-14, 2010.
View all prior HomeGain national and state home prices surveys.
The third quarter 2010 regional results are available by clicking here.
Set forth below are the results of the third quarter 2009 and 2010 national home prices survey as well as the results of the second quarter 2010 survey. Also set forth below for selected questions is the national home owner response data for the third quarter of 2010. 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?
Agent Commentary From Question 1 — Have home prices increased, decreased or stayed the same in the last year?
“Prices have dropped so much, it is difficult for the sellers to price their homes to sell. The majority of the homes I have sold have been about 10% less than the asking price.” – Karen Long, ALTERA Signature Properties, Brentwood, California
“Prices are stable considering the large number of foreclosures that are still occurring. I think that due to the large number of distressed properties, prices will stay pretty low, probably for 16 months or so.” – Jim Swanson, Prudential California Realty, Sacramento, California
“Home prices are directly linked to salaries. As the pay has gone down, so have the prices. People can only pay what they can afford.” – Christianna Stempnik, Sterling Heights, Michigan
“Home values are stabilizing some, but those who want to sell right now either have to have perfect house and/or a perfect price. Buyers will jump out of their holding patterns if they are educated about the market and find a ‘great’ deal.” – Joe Herban, Columbus, Ohio
“Home prices in our area have not yet stabilized. We are still seeing a decline.” – Wendy Nicely, RE/MAX Paramount Properties, Alpharetta, Georgia
“Home prices are slowly inching up due to total rehabs and transferees. If it keeps going this way, we will be in a stronger market this time next year” – Lisa McKnight, Century 21 Fortune Realty, St. Louis, Missouri
Overall, 79% of home sellers believe their homes are worth more than their agents’ recommended selling price.
Overall, 69% of surveyed agents and brokers indicated that their home buyer clients think homes for sale are overpriced.
Agent Commentary From Question 3 — How do buyers feel that homes for sale are priced?
“Home prices have seemed to stabilize and now it’s time for buyers to come to the realization that EVERY home on the market is under-valued” – Keith Dickerson, RE/MAX of Naperville, Naperville, Illinois
“Sales are increasing because of falling prices and record low interest rates. Many buyers are realizing this is finally their chance.” – John Ralph, The Wells Group, Durango, Colorado
“My main problem is buyers wanting to make low or extremely low offers on homes which are fairly priced.” – Andrea Harrison, Annapolis, Maryland
Overall, almost half of agents nationwide indicated that there is an average difference of less than 5-10% in price between what sellers believe their home is worth and what it is listed at.
Agent 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?
“Buyers feel like that they have to get a house for less then it appraises for. My sellers are just happy if their house sells.” – Leona Schilling, Craig-Massee Realty, Milledgeville, Georgia
“Home sellers almost always think their homes are worth more than they are until you show them comparables and even then they still have an emotional bias.” – John Gosche, Boise, Idaho
“Some home sellers don’t appreciate a good deal when it’s on the table. They think if they hold out then the buyer will pay more. That is not the case. The buyer will move on to another house.” – Concetta Pepenella, RE/MAX Metro, Staten Island, New York
“Unfortunately, sellers are not realistic yet, as to their home’s value. We can show every statistic we have access to, and sellers still seem to believe it applies to everyone but them.” – Rick Sandberg, Ryan Hill Realty, Naperville, Illinois
Overall, nationwide, agents indicate that 81% of homes sell for less than the price they are listed at.
Agent Commentary From Question 5 — What is the average difference in price between what the home is listed at and what the home sells for?
“Most homes start 20%+ overpriced. However, if you take the price at time of an accepted offer, the List-to-sold ratio average is 92%. The problem lies in the 180-700+ days it took to get there.” – Cyndee Haydon, Charles Rutenberg Realty, Clearwater, Florida
“Our market depends on price range. Lower priced homes are selling for about 97% of asking price, mid-priced about 90% and high priced about 84% of ORIGINAL list price.” – Ray Sherman, Denver, Colorado
Overall, the majority of agents and brokers think home prices will decrease in the next six months.
Ohio real estate professionals appear to be the most optimistic about the direction of home prices in their state, while those in Connecticut appear to be the least optimistic.
Agent Commentary From Question 6 — In the next six months, will the values of homes in your market increase, decrease or stay the same?
“Until we stop losing jobs, start creating REAL jobs with full time wages, stop foreclosures and increase Consumer Confidence, we will find that home prices continue to decline!” – Karen Marie Smith, Norfolk, Virginia
“The news says there are a lot of foreclosures but we only have a few in Northern VA. The news says home prices are coming down, yet they are up slightly in Northern VA.” – Hayley Einseln, Weichert Realtors, Annandale, Virginia
“Consumer confidence drives home prices.” – Jen Klarman, Long & Foster Real Estate, Annapolis, Maryland
“Vacation condos will likely increase by 20 to 50 %. Middle, working class homes in the $400k to $800k range will stay the same. Homes over 2 mil will stay or drop 20% or more.” – David Tavenner, Lahaina, Hawaii
“Sales have slowed and prices are sagging. Interest has increased, but people seem to be worried about the direction of prices, rates, and their jobs, so they are deciding to rent for now, instead of pursuing a home purchase.” - Dennis Helmnstetter, Real Estate Teams LLC, Frederick, Maryland
“Economic conditions are stagnant to declining. This makes for a fair to poor housing market. I’m hoping things will improve in the Fall but that is just a hope.” – Mark Brown Jr., Baltimore, Maryland
“Expect a steady recovery. Our sellers would prefer at least a mini-boom but we don’t need any boom if it is going to be followed by another bust. Slow and steady is the best way to recover.” – Joelle van den Berg, Beverly Hanks, Lake Lure, North Carolina
“Market is beginning to stabilize even though the values are still declining in several segments. Some segments have bottomed but not all.” – Randall Hannaway, Steamboat Springs, Colorado
“In the past 3 weeks buyer inquiries have come to stand still. Buyers appear to be back on the fence awaiting further price drops.” – Richard Daskam, Keller Williams Realty, Los Alamitos, California
“Ever since the first time homebuyer credit had not been extended mostly realtors are beginning to distrust one another and is beginning to slow the market down with steady buyers and inventory is abundant.” – Maria Caudle, Caudle & Company Realty, Orange, California
Agent Commentary From Question 7 — What percent of homes for sale in your area are foreclosures?
“Sarasota/ Manatee courts have a backlog of 24,000 foreclosures according to the Herald Tribune Sept 6, 2010. This does not invite appreciation anytime soon.” – Margaret Amador, Allison James Estates & Homes, Sarasota, Florida
“Foreclosures and short sales continue to affect the market place and have resulted in the devaluation of resale home prices.” – Larry Davis, ERA American Brokers, Renton, Washington
“Columbia, SC has one of the lowest foreclosure rates in the country. The housing market is very stable and here is only down by less than 20%, and that figure pertains to home values and sales.” – Samantha M. Taylor, Keller Williams Realty, Columbia, South Carolina
“The 1st time homebuyer tax credits (CA & Federal) were key to my business this year. The government should create similar programs to stimulate real estate sales in 2011, motivating buyers to enter the real estate market.” – Lori Mason, USA Realty & Loans, Chula Vista, California
“First-time home buyers are happy with the homes they are able to purchase at the prices they are able to pay. The loss of the tax credit does not seem to matter.” – Linda Midkiff, Coldwell Banker Premier Real Estate, Paso Robles, California
“The last tax credit made my year a success even in this economy but I believe the market will never recover if they keep ‘playing’ with it. – Bethena Smith, Coldwell Banker Apex Realtors, Rowlett, Texas
“The Indianapolis Metro home sales market dropped drastically when the Fed Tax Credit program expired.” – David Vaughn, Indianapolis, Indiana
Overall, 64% of surveyed real estate agents and brokers disapprove of President Obama’s performance.
Forty-nine percent of agents and brokers surveyed indicated that they “strongly disapproved” and 18 percent “somewhat disapproved” of Barack Obama’s performance as President earning him a 64 percent disapproval rating vs. the 65 percent disapproval rating of agents and brokers surveyed in the second quarter of 2010. In the third quarter 2009 HomeGain survey, the President had a 59% disapproval rating from agents and brokers.
Forty-four percent of home owners “strongly disapproved” and 17% “somewhat disapproved” of the President’s performance earning the President a 61 percent disapproval rating. The Rasmussen Daily Presidential Approval Index taken during the same period as the HomeGain survey indicated that President’s disapproval rating was 54% with an average of 43% “strongly disapproving” of the President’s performance.
Agent Commentary From Question 10 — How do you as a Realtor think Barack Obama is performing in his role as President?
“President Obama inherited a terrible economy from Bush and he is doing his best to stabilize and turn things around.” – Keji Iluyomade, Greenbelt, Maryland
“I voted for Obama and frankly would appreciate if my vote can be refunded.” – Miguel Soria, Miami, Florida
“Considering the condition the Bush administration / congress put us in, I’d say Obama is doing as good as/better than could REALISTICALLY be expected! Now, ask us how you think the BANKS are doing THEIR jobs!” – Judi Bryan, Bloomingdale, Illinois
“If the government will not tinker with housing & leave interest rates low our market will correct itself. I do not agree with Obama’s agenda but Congress is responsible for the damage since they are the ones who actually spend our money, not Obama..” – Eileen Covington, Keller Williams Realty, Charlotte, North Carolina
“Obama needs to quit trying to solve everything by throwing money at the problem. He needs to let the free enterprise system work out whatever way it works out. Too much big government.” – Scott Myers, Century 21, San Antonio, Texas
“It is not limited to Obama. Our whole government doesn’t have a clue what they are doing.” – Dale Falkowski, Woodstock, Georgia
“The obama administration should quit meddeling in the marketplace so home prices fall to a realistic level in order to bring buyers back to the market and allow home prices to truly stabilize.” – Christine Mincher, Aptos, California
“Obama has waited too long to help the housing market in any way. He needs to make it the top priority, because if the housing market was going well, so would everything else.” – John Spain, Chico, California
“Obama is a moron and he is killing jobs in America. That will kill the housing market.” – Craig Robinson, Camarillo, California
“I wish governmentt spending had pulled us out of the real estate mess. A home purchase is a vote by consumer for the future. The political agenda of the media amplifies negatives in the housing market, government policy, a desirable future. – Tim Taylor, Real Living, Powell, Ohio
“Our government has done nothing but slow our recovery down by postponing the inevitable. History shows that the market will work itself out if you leave it alone.” – Michael Seger, Seger Realty, Inc., Watkinsville, Georgia
“If we could only get the government out of the way, we might actually see some recovery!” – Mitch Ribak, Tropical Realty, Melbourne, Florida
“There is a continuing, obstinate refusal on the part of the American public to either acknowledge any part of, or accept any responsibility for, the continuing fallout from the economic policies of the previous administration.” – Dale Swanson, Windermere Real Estate, Palm Springs, California
“Life sucks since Obama has been in office.” – Homeowner in Loveland, Ohio
“Regarding President Obama – as a strong progressive, I have been a bit disappointed that he did not try to do more. I am very pleased with what he has tried to do with foreign policy, am thrilled with the health care legislation (although, again, I wish he had pushed for more) and believe he has worked diligently to fix the economy. The Republicans are the problem, not President Obama.” – Homeowner in Columbus, Ohio
“It will take a decade to repair the economic damage that the Bush administration took a decade to create. The voters are blind and dumb if they blame the Obama administration for not being able to solve the problems in a year and a half.” – Homeowner in Rockville, Maryland
*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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