HomeGain, one of the first websites to provide free instant home values, today announced the results of an extensive nationwide home price survey of more than 1,150 current and former HomeGain Realtor® members.
The results of the second quarter HomeGain Realtor Survey on Home Prices published below show generally that since the first quarter HomeGain Realtor Survey on Home Prices, HomeGain members are of the opinion that home sellers are becoming more realistic about home prices and buyers less so.
The HomeGain home prices survey is unique because we survey Realtors who hear both sides of the story — from buyers and sellers. Other surveys only focus on homeowners’ pricing expectations.
According to the recent survey, HomeGain members think that 36% of buyers believe that homes for sale are fairly priced or under priced vs 43% who believed the same in the first quarter. Conversely, 36% percent of homeowners think that their homes should be listed 10-20% higher than what their Realtors recommend down from 45% in the first quarter.
HomeGain members expressed more optimism in the current survey on the direction of home prices with 22% thinking that home values will rise in the next six months compared to just 11% who believed the same three months ago. Twenty nine percent of HomeGain members expect home prices to fall in the next six months vs. 53% who believed the same three months ago.
HomeGain members continue to believe that the Obama stiumulus package has done or will do little to change the direction of home values. 55% of survey respondents believe that plan has had or will have no impact on home values vs 45% who believed the same in the first quarter survey. Realtors have strong opinions on the stimulus plan and indeed the bulk of the commentary (published below) we received related to it.
We also asked our members whether they approved or disapproved of President Obama’s performance so far - 57% approved vs. 43% disapproved. These results mirrored the nationwide results of the Rasmussen Daily Presidential Approval Rating Tracking Poll.
The HomeGain 2nd Quarter Realtor Survey on Home Prices was conducted from May 6-11.
Here are the complete results of the second quarter 2009 HomeGain Realtor® Home Values Survey:
1. On average, in the last year do you think your homeowner clients home values have:
NATIONAL RESULTS
REGIONAL RESULTS
Surveyed HomeGain Agents’ Commentary:
“On average, in the last year my homeowner clients’ home values have decreased in value.” – Calvin Holt, Long & Foster Real Estate, Inc. College Park, MD
2. On average, what do your homeowner clients believe that their home is worth?
NATIONAL RESULTS
REGIONAL RESULTS
Surveyed HomeGain Agents’ Commentary:
“Many homeowners need to adjust their thinking on what the home is worth, if it is priced right there is a good chance of having multiple offers on the property.” – Cesar RE/MAX PROS, Kissimmee, FL
“Rather than lower the sales price, sellers are willing to help home buyers with closing costs and “save face” vis a vis the sales price of their home. The actual value of the home, though, is discounted by the amount of the seller’s concenssion.”
“Sellers are realising they need to replace that old carpet and do the extra things needed to sell their home they didn’t have to during 2005/2006.” – Seth Wallace, Associate Broker, Van Dorm Realty Inc. Olympia, WA
“Since February, my market area in Howard County, MD, has changed from a buyer-oriented market to a more neutral market, led by first-time buyers. The gap between what sellers ask and buyers offer has changed from about 10-15% to about 5%.”
“Sellers believe their house is worth 10-20% more than what the comps suggest. After I show them the evidence to prove what the market value is for their home, they then come down in price. It then gets sold at asking price or about 1-5% less.”
“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.” – Kathy Nissley, REMAX Associates, Hockessin, DE
“We do not list a home if the seller insists on pricing more than 10% of value.”
“It is important to price your home well and competitively when you first put your home on the market.” Christian Kenzig Russell Real Estate Services, Strongville, OH
“It would be helpful if people who don’t really need to sell their home would not put them on the market at ridiculously high prices.” - Benjamin D. Clark Homebuyer Representation, Inc. SLC, UT
“If homes are priced correctly from the start they are selling quickly, and for more money than homes priced above market value. There seems to be a high-end seller disconnect.”
3. How do your buyer clients feel that homes for sale are priced?
REGIONAL RESULTS
“We are seeing more lookers, but they most want a steal of a deal to move forward.” – Lyn Karol, Coldwell Banker-Incline Village Realty Incline Village (Lake Tahoe), NV
“Home values needed to be stabilized, as they now are, to decrease inventory. New home construction needs to be controlled, they are continuing to build w/ properties sitting vacant everywhere.” – Martin Champagne, Shorewest Realtors Oak Creek, WI
“What’s affecting our Property Values are the Property Taxes, they are out of control. We need to consolidate town services and offer credits to our seniors.” – Thomas Laurita, Halstead Property NJ, LLC Maplewood, South Orange
“Buyers are definitely shopping. They are really taking a good look — not buying the first house they see. The stimulus package has really given the real estate the jump start it really needed.” – Janice Vollmer Re/Max Associates Warminster, PA
“Now we’re struggling with Buyers wanting a better deal despite what the Comps say.” – Michelle Sarabia Bob Parks Realty, LLC Gallatin, TN
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?
NATIONAL RESULTS
REGIONAL RESULTS
5. What is the average difference in price between what the home is listed at and what the home sells for?
NATIONAL RESULTS
REGIONAL RESULTS
6. In the next six months, do you think the values of homes in your market will:
NATIONAL RESULTS
REGIONAL RESULTS
Surveyed HomeGain Agent Member Commentary:
“The Twin Cities area is springing to life just in the last three weeks.” – Dee Ryan, Weichert Realtor Advantage Woodbury, MN
“I think we should start to see some steady improvement in the Real Estate market by this fall. That is, if the banks start lending more money and the credit card companies quit acting like loan sharks with their clients!”
“Albuquerque continues to be one of the more resilient areas of the country. We are optimistic that we will see a bottoming of the market throughout the remainder of 2009.” – Keith and Gina MacRae, Coldwell Banker Legacy Realtors, Albuquerque, NM
“House prices are beginning to show signs of stabilization. 2009 and 2010 will be the perfect time to get into a new home or commercial business.” – Andee A Nast, Coldwell Banker Liberty, Realty Morro Bay, CA
“There is major improvement in the number of homes selling. More buyers are entering the market, especially first time home buyers.” - Heather Lawson, Broker Century 21 Watson Real Estate, Genoa, IL
“I believe housing market is starting to recover.”
“Our market is good and rebounding very quickly to old levels. Over the last couple of weeks showings have been increasing.” – Bruce Miller RE/MAX Integrity, Spring, TX
“Prices here in North Jersey have pretty much bottomed out and that mortgage rates can go up. Once we get the first timers buying the rest of the market will follow suit.” – Gail Vinnal, Savva Realty, Broker Associate, Cedar Grove, NJ
“Buyers are looking for bargains. Many are afraid to act because of the economy. Nevertheless, I think we are getting close to a bottoming out of the market.”
“Markets are definitely picking up. It seems that Buyers are getting off the fence and taking advantage of tremendous buys.” – Gillian Goldrich, Coldwell Banker Residential Brokerage, Woodbridge, CT
“Home prices are stablizing, inventory is getting absorbed…we’re on our way to recovering!” – Janie Gervasi, RE/MAX Accord, Lafayette, CA
“Homes values will continue to decline as long as banks continue their selfish acts of punishing the people instead of themselves for allowing this to happen because of their greed.” – Charlene Lee,Prudential Lake Hartwell Realtors, Hartwell, GA
“The market can only get better.” – Bonnie Collins, Adams-Cameron Realty, Ormond Beach, FL
“There has been a noticeable change for the better in home sales in the past month!”
“Before economy woes, prices were inflated and now are not. Media should quit making it their top story and things would get back to normal.”
“We as realtors need to stay positive about the market and home prices. Their is enough negativity generated by the media.” – Audrey “Ellen” Elliott, Texas United Brokers, Pearland, TX
“I think we are on the right track. Prices, however, will continue to decline moderately but I think the market will remain soft for at least a couple more years.”
“The Denver market has dramatically improved and buyer activity is brisk. Sellers are getting close to their asking price if their home is in good condition.” – Gary Belhumeur, Home Source Group, Arvada, CO
“There is an uptick in business and sales I think it will last through the summer months.”
“The market here in Southeast Michigan is still trending down. The negative impact of the automotive industry and associated support businesses has been devastating on the economy.” – Jerry Davis, National Realty Centers, Livonia, MI
“Values in my micro-market (South Beach, FL) seem to be stabilizing. When foreclosures appear, they tend to sell briskly, often over asking price, as investors are scooping up that inventory which tends to drag down the overall market.”
“I refuse to participate in the recession! The Columbia, SC, market is one of the most stable in the nation, and although we have seen it slow somewhat, we are still going strong!” – Nicole Donaghy, Realtor ERA Wilder Realty, Lexington, SC
“There will be no significant improvement in the housing and mortgage markets until the remaining toxic assets are addressed reponsibly from the bottom up.” – Bob Seiders, Broker Associate, RE/MAX Signature, Daytona Beach, FL
“We can see a slight positive turn in the Real Estate Market in our area. People are starting to feel optimistic that the worst is coming to an end.” – Veronica Lawson, Exit Latham Realty, Easton, MD
“As the spring market brings forth additional inventory, the supply continues to exceed demand and house prices continue to stagnate while home sales rise.” – Joe Plourde, Plourde Realty Suffield, CT
“In my opinion the north East is seeing a leaveling off of home prices, and in some cases prices seem to be on the incline.” – Gary Savage, Better Homes and Gardens RE / The Masiello Group, Amherst,NH
“We have gone from an inventorey of 30 months to 9 months. If a buyer wants to buy this is the very best time. No one will know that the bottom has been reached until prices begin to go up!” – Elizabeth Conway, Broker Indigo Realty, Delray Beach, FL
“Our market is seeing increased activity and the fear-factor has lessened. If a home is priced properly and staged, we are seeing quick turnarounds.”
“Houston Market is very strong!!”
“The average sale price has increased in my area. Recent factors are the stimulus and the lack of good inventory to qualified buyers.”
“There is now about 7 months worth of inventory in my area down from 9 months. Historically, 6 months of inventory means a ‘regular’ market for us.” – Greta Saliger Long & Foster Realtors, Inc. Crofton, MD
“We are starting to see an increase in buying (slow). The White House gave the Bank’s all this money and should have made sure it was used to loan to home buyers.” – Sam McCann Keller Williams, Realty Pearland, TX
“The year 2010 will be the year that homes will go down in value again due to the rise of Foreclosures. Many homeowners have yet to re-finance their mortgage that was originated in the height of the market in 2005.” – Candace Larson, ProFormance Realty, Phoenix, AZ
“I am concerned we have yet to feel the brunt of the white collar layoffs and the credit card bubble.”
“Short Sales are in large quantities over here and there is a major problem in getting the Lenders to respond to offers!” – Joe Malecki, Licensed Real Estate Broker, Realty Executives New Image, Palos Hills, IL
“The number of sellers has decreased to less than the number of buyers.”
“My area is strongly influenced by REO inventory. The good news is, REO’s are seeing multiple offers higher then list. Sales are up and inventory is down.” – Gene Hastings, Associate Broker Home Smart, Mesa, AZ
7. What percent of homes for sale in your area are foreclosures?
NATIONAL RESULTS
REGIONAL RESULTS
Surveyed HomeGain Agents’ Commentary:
“Foreclosures and Short Sales account for 66% of closed sales last month and yet are only 22% of the inventory. Distressed properties are the market.” – John Young, Keller Williams Realty, La Quinta, CA
“This is a time of great opportunity. 97% of home mortgages are not in foreclosure!” – Gayle Langston, Alain Pinel Realtors East Bay Area, Orinda, CA
“We are seeing tons of foreclosures come on the market at substantially reduced prices. The average home seller cannot compete, which is causing still more forclosures.” – Jim Elliott Reno, NV
8. What is the average home price in your area?
9. In your opinion, what impact has the Obama Stimulus package had or will have on home values this year?
Surveyed HomeGain Agent Member Commentary About Obama’s Stimulus package:
“I think they should extend the Stimulus package for another year. Buyers are still hesitant to pull the trigger still waiting for prices to come down even further.”
“The first-time home buyer initiative has been a great success and a positive influence on folks here in the mountains.” – Charlie Ragonesi, All Mountain Realty, Jasper, GA
“Too early to tell the effect of Obama’s Stimulus Plan. Key to economic balance is the stabilization of the credit markets & finance-related institutions.” – MW Daniel Lloyd & Associates, Columbia, MD
“It takes time for economic stimulus to work. We didn’t get into this mess in 6 months, we won’t get out in that time period either. Give it time to work.”
“Everybody wanted change, when it’s all done thats what we will have left, nickels and dimes.”
“Obama’s overreaching will cause businesses to contract.We have had the biggest housing bubble burst since the Great Depression. Now with all of this shocking government spending & debt, we are creating a government bubble. This will not end up well.”
“As much money the Gov’t is printing for this stimulus, is inflation next? Besides the typical stimulus abuse by some… AIG, etc., how can anyone afford to pay this money paid?” – Dave Vaughn, Century 21 Realty Group, Indianapolis, IN
“$8000 credit needs to be expanded to all home buyers.” – Dennis Herman, Realty Executives, Menomonee Falls, WI Milwaukee
“We needed interest rates reduced on home loans instead of giving the money to the banks.” – Dianne Rath, ERA Eagle Estates Realty, San Diego, CA
“I had hoped the 1st time homebuyer tax credit would have more of an impact in this area, but with record unemployment and lack of consumer confidence, our sales are still suffering. We, as an industry, are not doing a very good telling the story.”
“The debt this administration is saddling us with is more than the economy can handle and we would have recovered sooner had they just got out of the way.”
“I think a reduction in capital gains tax would bring out investors. The inventory for first time buyers is really tight right now and predicted to get even tighter as the $8000 tax credit deadline draws near.”
“We need the $15,000 any buyer tax credit to truly stimulate the residential real estate market.” – John Katker, New Street Realty
“I love the $8000 tax credit and have seen a big impact on sales. My concern is when the credit goes away November 30, the market will “hit a wall’ and we’ll lose the gains we made. My hope is for a “step-down” credit-like $4000 for the next 6 mos or something.”
“Obama needs to do a $15,000 tax break across the board. This would help everybody not just new home buyers that can’t qualify right now or is having a hard time getting a loan.” – Dwayne Pierce, Coldwell Banker Legacy, Glasgow, KY
“I don’t like the direction our country is heading. Federal Government should not have any role in private enterprise. The TARP and Stimulus is a huge scam, as proved by Chrysler declaring they will not pay back taxpayer money.”
“I believed if Obama would have lower taxes for business or no tax for a while it would have helped the economy turn around. Which would have helped us Realtors.” – JoAnn Gould, Gould & Associates Realty, La Pine, OR
“Our “First Time Home Buyer’s” are paving a turn in the market thanks to President Obama’s stimulus package.” – Debbie Hanuman, Edina Realty, Champlin, MN
“I don’t like the direction our country is heading. Federal Government should not have any role in private enterprise. The TARP and Stimulus is a huge scam, as proved by Chrysler declaring they will not pay back taxpayer money.”
“Since December I’ve had quality, first time buyers. The stimulus package has made a difference when lower prices & fabulously low interest rates did not.” – Shirley Messinger, Prudential Fox & Roach Realtors, No. Brunswick,NJ
“The problem is the lack of information on the stimulus plan. We get several calls a week at our agency from people wanting to buy a home on the Obama plan.” – Scott Patterson, Century 21 Mike Bowman, Inc, Grapevine, TX
“It is too soon to tell if Obama’s changes are helping.”
“Home price have stabilized from the Stimulus but only under the $120k price point. Anything higher than that is still decreasing in Value.”
“Prices are reasonable and rates are low. Negative articles on tv and newspapers are holding people back. Great buys are out there, especially with the $8,000 tax credit.” – Dina Collins, RE/MAX Premier Prop, Goodlettsville, TN
“The Stimulus Plan has helped with new buyers who can now afford to do the small cosmetic repairs when they move in to a home like paint and carpet. There continues to be more home owners defaulting on loans and needing help.”
“I believe the government needs to allow the private sector to either succeed or fail. The telling point will be November, 2009.”
“Stimulus for ALL homebuyers is needed to stabilize prices and attitudes of home buyers.”
“I would love to see government out of the real estate business.”
“Government Policy is making the downturn much worse, and will make it last longer than it should.”
“The stimulus package has hurt the debt load. nearly impossible to refinance as they will only look at late pmt candidates or people with Grade AAAA paper. The appraisals are killing the new market values and the resale market.” – Gregg Rowe, Trust Realty
“Once the inflation hits from all the continual spending our way out of debt the values of homes will fall about 50%. This administration is sowing the seeds of Socialism and Financial ruin.”
“For first-time buyers, this year is THEIR year. Prices are affordable, interest rates are excellent, and the $8,000 tax credit is the icing on the cake.” – Felicia Grady, Realty Executives Valencia, Valencia, CA
“In Arizona, the $8,000 first time home buyer tax credit has helped the low end of the market considerably. However, there has been no trickle-up effect. The mid-range and upper end of the market is still very soft.”
“Feds still need to work on encouraging lenders to work with borrowers, short sales and now it seems too difficult to get a loan. First-time Buyers are responding to tax credit and low interest rates.”
“The credit from Obama should have been for a 90 day period, buyers feel no need to rush, this could have been extended based on results. The other issue is the Government has put no pressure on banks to expedite Short Sales.”
“Obama has done nothing but reward those who purchased homes that they could never afford at the expense of those who pay their mortgage and live in a house they can afford.”
“The stimulus package seems to have increased 1st-time buyer activity in our market, but I think an increase in positive consumer sentiment is having an impact as well.”
“The up to $8,000 tax credit is a start to stimulate home ssales. Making this available to everyone, not just 1st timers, would provide help and hope to many more, and give our industry the stimulus it needs.” – Lily Duncan, Lily Duncan Realty, Wichita, KS
“The Stimulus Bill was a headline for Obama with no significant impact on addressing the foreclosure situation; enabling the financial institutions to ignore the fact that their assets are overstated while losses are buried in the bureaucracy of the bill.”
“The budget of the government is still increasing so the lost tax revenue of the $8,000 buyer credit will be passed on to the other taxpayers. Socialism only works untill you run out of other peoples money.”
10. How do you think Barack Obama is performing in his role as President?
Surveyed HomeGain Agent Member Commentary About Obama’s performance:
“Disapprove strongly regarding the President but all of Congress as well, Democrats and Republicans.”
“We as realtors need to stay positive about the market and home prices. Their is enough negativity generated by the media.” – Audrey “Ellen” Elliott, Texas United Brokers, Pearland, TX
“President Obama is performing fairly well. He’s had a lot thrown at him and seems to still be standing tall. Successes??? Way too early to tell.”
“It’s just been 100 days since the new administration has taken office. It’s far to early to judge any results or effectiveness.”
“Obama has no clue.”
“BLAME THE MEDIA”
“The media’s negative reporting has caused a slow down in this area. With the increased credit scores and regulations it has made sales decrease. But on the other hand it has help the buyer, who is qualified a more secure prospect for the seller.”
“Media, they only talk about how bad our economy is, but with them talking about all the negatives it creates fear which is counter productive to what we need to do to start turning our economy around.” – Adam Gullett Homestead Real Estate, Somerset,KY
“Before economy woes, prices were inflated and now are not. Media should quit making it their top story and things would get back to normal.”
“The media’s negative reporting has caused a slow down in this area. With the increased credit scores and regulations it has made sales decrease. But on the other hand it has help the buyer, who is qualified a more secure prospect for the seller.”
“We need to break the cycle of Perception Is Reality out there for both buyers and sellers per the news media. Be positive, be optimistic, and keep selling those homes. People will always want a place to call home — NOW, at 18% interest rates-always!”
“Home prices in Spokane have held up fairly well compared to the National statistics. The media and economy have had more effect than the actual market conditions. Buy up in a down market.” – Tom Clark, Coldwell Banker Northwest Group Spokane, Washington
“In my market there has been a minor decrease in our sales. That can be attributed to the massive negative media. With improved jobs we will see the market turn around soon.” – Jim Johnston, The Home Specialists, Pocatello, ID
HomeGain real estate home values survey results are based on responses of over 1,150 Realtors in the United States. State survey results for Q2 are available for the following states : California home prices, Texas home prices, Florida home prices, New York home prices, New Jersey home prices, Illinois home prices, Georgia home prices, Arizona home prices, North Carolina home prices
Virginia home prices, Massachusetts home prices and Colorado home prices
*Regions are divided as follows:
- Northeast: Maine, New Hampshire, Massachusettes, 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 Tennesee
- Midwest: 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, New Mexico, Utah, Idaho and Montana
Get home prices in United States cities:
May 13, 2009 – New York home prices drop 12.8% in NY metro area -Istock Analyst
May 9, 2009 – Chicago home prices drop 26.8% from 2008 – Chicago Sun Times
May 12, 2009 - Houston home prices drop 4% – Khou.com
May 13, 2009 – Philadelphia home prices fell 7% in a year – Philadelphia Business Journal
Find U.S. homes for sale and search U.S. real estate
HomeGain real estate home values survey results are based on responses of over 1,150 Realtors in the United States. State survey results for Q2 are available for the following states : Texas home prices survey, Florida home prices survey, California home prices survey, New York home prices survey, New Jersey home prices survey, Georgia home prices survey, Arizona home prices survey, North Carolina home prices survey,Virginia home prices survey , Massachusetts home prices survey ,Washington home prices survey,Colorado home prices survey
Great and insightful report. The graphs are much more effective than tables.
May 15th, 2009 at 10:18 am
These are some interesting and somewhat bewildering real estate statistics. It’s hard to know where the consensus is leading.
May 15th, 2009 at 10:16 pm
Very interesting, and very well detailed.
New Farm Real Estate
May 17th, 2009 at 10:53 pm
Nice work, what a wealth of information. I like the graphs as well.
In the Atlanta area, all the buyers are still looking for huge discounts on asking prices. Also, sellers are still pricing way too high and praying.
Frustrating to function in that environment.
Rob for Atlanta Real Estate
September 7th, 2009 at 7:34 pm
Thanks for putting the time in to complete this article, very detailed and easy to read.
September 9th, 2009 at 1:24 am
What an Amazing article. Very detailed, the graphs are excellent. It really was informative and substantial. We’re looking at how we can reference and site this article with the mini-topics we have planned. Thanks again.
February 11th, 2010 at 11:14 pm
This is a great article. Its great to see that the Market really corrected itself. For the first time we see taht some buyers actually believe that the prices are at market value and some believe that they are under value. South Florida is turning that corner.
August 15th, 2010 at 7:08 pm
Good reading – Thanks! Enjoy the articles and the up to date latest info. I share this info with my clients – it’s helpful.
September 9th, 2010 at 3:20 pm