Half of North Carolina Real Estate Professionals Expect Home Price Declines; Seventy-Four Percent of North Carolina Home Buyers think home are overpriced

Last month, HomeGain, one of the first companies to provide free online instant home valuations, released the third quarter results of our nationwide survey of over 1,100 HomeGain current and former members and 2,600 homeowners. Our survey asked their opinions on home values and what they thought of President Obama’s performance as President. On this blog we published the 3rd quarter 2010 national results as well as the complete 3rd quarter 2010 regional results, including commentary from real estate agents and brokers.

Earlier we released the results of the  3rd quarter 2010 California home prices survey,  the 3rd quarter 2010 Texas home values survey, the 3rd quarter 2010 Florida home values survey, the 3rd quarter 2010 New York home values survey, the 3rd quarter 2010 New Jersey home values survey and the 3rd quarter 2010 Illinois home prices survey. In the coming days we will be releasing home values survey data from  Arizona, Virginia, Colorado, Georgia, Nevada, Pennsylvania, Massachusetts and other states.

Today we are releasing the North Carolina home prices survey results.

According to our home values survey, North Carolina homeowners have decreased their pricing expectations over last year. They continue to believe their homes are worth more than their Realtors’ recommended listing price. According to the third quarter 2009 North Carolina home prices survey, 32% of North Carolina home owners believed that their homes were worth 10-20% higher than the Realtor recommended listing price. That percentage decreased to 25% in the current survey down from 39% in the second quarter of 2010. Seventy-seven percent of North Carolina home owners now believe that their homes should be priced higher than the Realtor recommended listing price down from 90% a year ago and 81% in the second quarter. (see question 2).

Seventy-four of North Carolina buyers believe that homes are over priced with just 18% thinking that they are fairly priced. Eighty-three percent of North Carolina home buyers thought homes were over priced in the second quarter of 2010 and 17% thought they were fairly priced.   Thirty-nine percent of home buyers in the Tar Heel State currently believe homes are over priced by 10-20%. (See question 3)

Fifty-two percent of North Carolina real estate professionals believe that think home prices will decrease vs. 38% who so believed in the second quarter of 2010 and vs. 32% who so believed a year ago. Surveyed North Carolina homeowners were less pessimistic on the direction of home values with only 29% thinking that home prices would fall in the next six months and 50% thinking they would stay the same. (see question 6)

Eighty-one percent of North Carolina real estate professionals surveyed disapproved of Obama’s performance as President with 57% “strongly disapproving”. In the second quarter of 2010 84% of North Carolina real estate professionals disapproved of Obama’s performance. In the third quarter of 2009 62% of North Carolina agents and brokers disapproved of Obama’s performance. North Carolina’s real estate professionals rated President Obama’s lower than any state in the nation. North Carolina home owners rated the President better with 54% disapproving of the President’s performance. (see question 10)

Set forth below is the third quarter 2010 real estate professional and homeowner North Carolina home prices survey data along with the 2nd quarter 2009 and 2010 real estate professional survey data along with the third quarter 2010 national home prices survey data.  Click on each question to see complete results:

1. Have home prices increased, decreased or stayed the same in the last year?
2. On average, what do homeowners believe that their home is worth?
3. How do buyers feel that homes for sale are priced?
4. 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?
5. What is the average difference in price between what a home is listed at and what a home sells for?
6. In the next six months, will the values of homes in your market increase, decrease or stay the same?
7. What percentage of homes for sale are foreclosures in your area?
8. What is the average home price in your area?
9. What percentage of your clients are first-time buyers?
10. How do you think Barack Obama is performing in his role as President?

Question 1:

Question 2. On average, what do your homeowner clients believe that their home is worth?