HomeGain®, one of the first websites to provide free instant home values, today announced the results of an extensive nationwide home price survey of current and former HomeGain Realtor® members.
The results published below show generally that HomeGain Realtor members are of the opinion that home sellers believe their homes to be worth more than Realtors and homebuyers believe that they are worth.
A recent Zillow® poll showed that sellers were no longer ‘in denial’ regarding the U.S. housing slide. The latest HomeGain survey, however, underscores that while homeowners may be aware of falling home prices around the country, many believe that the slide doesn’t apply to their homes. Our survey shows that homebuyers and Realtors are telling homeowners their homes are worth considerably less than homeowners think they are.
A majority of HomeGain Realtor members believe home prices will continue to fall in the next six months and that the Obama stiumulus package will do little to change the direction of home values.
Here are the complete results of the first quarter 2009 HomeGain Realtor® Home Values Survey.
Surveyed HomeGain Agents’ Commentary:
“Sellers know that prices have fallen but that somehow doesn’t apply to them because they have “upgraded vinyl” or some such nonsense. In other words, their house has the golden doorknob,” said Pamela Frey-Primiani of Keller Williams Realty in Sicklerville, New Jersey, and HomeGain AgentEvaluator® member.
“Our market is great for buyers looking for a deal and that’s what they are getting with the foreclosures and short sales (if they close). Owner occupants cannot compete and are unwilling to list at the bank prices.”
“The buyers are afraid to buy too soon,” stated Renah Bell of Cedarhurst, New York.
“The homes that have been selling (aside from short sales and foreclosure/bank owned homes) are homes that are priced relatively low and have good appeal. Buyers are in now hurry and ask for everything,” wrote Larry Davis of Rento, Washington, HomeGain AgentEvaluator member.
“Several home buyers are waiting to purchase as they feel prices will decrease.”
Surveyed HomeGain Agents’ Commentary:
“Florida home prices will continue to decline until more is done to stimulate home buying.”
“Things have been ‘challenged’, as we like to say, for about a year, but very recently things seem to be stabilizing, and the quantity of both buyer and seller clients is increasing.”
Surveyed HomeGain Agent Member Commentary Against the Obama Stimulus Package:
“The Stimulus package and Moriatoriums will just prolong the foreclosure market.”
“Unfortunately we are headed in the wrong direction with this ‘spending’ package. Captialism doesn’t work when government tries to take over,” wrote Mitch Ribak of Tropical Realty of Suntree, and HomeGain AgentView , AgentEvaluator and Buyerlink member.
“We are in a tough market. The stimulus package will not be enough to stabilize the market.”
“Rewarding the people not paying thier mortgages with free equity makes me sick.”
“I hope Obama’s plan will stabilize prices…Being involved in the stock market also, so far Obama’s plans have not been well received.”
“Obama’s plan is no plan for turning the economy around. Until he stops beating up on corporations that create jobs, lowers taxes on those who pay income taxes, shows some personal integrity, and addresses the housing problem in a meaningful way — this mess is going to continue well into 2010 or even longer.”
“The stimulus package may help some people avoid foreclosure and/or make their loan payment more affordable, but values will continue to decline,” wrote Greg Rippel of Puyallup Washington, AgentEvaluator and AgentView member.
“The stimulus package has done very little impact on the housing prices. People who are on the verge of forclosure are mostly over-extended themselves and by prolonging the process of forclosure is not the answer to resolve the housing crisis.”
“Welcome to the New Socialist Republic of North America!”
“The latest Obama plan will not help markets such as South Florida, where people have huge amounts of negative equity.”
“The government needs to get out of the private sector.”
“The $15,000 proposed tax credit for ANY buyer would have been a much better incentive to help the real estate market,” wrote Diane McBride of Alpharetta Georgia, HomeGain AgentEvaluator member.
“Obama’s plan should have included ALL buyers.”
“The Obama stimulus plan and budget do NOTHING to help revive the housing industry!!!,” noted Nina Hollander of Charlotte North Carolina, HomeGain Buyerlink member.
“The stimulus package needs to address a broader span of homebuyers. Not everyone is a first-time buyer and not all owners are in default, but the falling values have made many upsidedown and prohibit moves,” wrote Diane Kryszak of Longboat Key, Florida.
“Obama stimulus package will not work it will bankrupt everyone.”
“I think what Obama is doing will make every thing worse in the long run.”
“1) The stimulus package may make a small dent in the number of lower priced homes but not enough to seriously affect the market. 2) The $8,000 tax credit should have been made available to ALL buyers not just first-timers and/or it should have be given as a “housing Voucher” to first-timers to use towards up to 3.5% of their closing costs or down payment if they have a maintained credit score above 600,” said Bisi Oloko, of Wake Forest, North Carolina.
“Obama’s first-time homebuyer credit and lower interest rates are helpful to the market. However, his proposal to eliminate the mortgage interest tax deduction is an absolute disaster for the market (buyers and sellers),” stated Mark Richardson of Duxbury, Massachusetts.
“I do not feel that the stimulus package will affect this — I think the overall economy will affect the prices.”
“Obama’s stimulus package will draw out this housing problem.”
“Overall I do not agree with the stimulus plan. I think the government could have done things differently to help home prices and the market in general. I do think however that the tax credit for first time home buyers is a step in the right direction. I just think that this or some form of this credit should have been offered to anyone purchasing a home in order to stimulate the overall market. In my opinion the stimulus bill puts too much money in places that do not provide a long term growth opportunity and only further expand government.”
“No economy has ever survived by printing money.”
“Not sure if the stimulus package will help. I would hope that it helps but when you overtax people that are the productive ones in society it often takes incentive from them to produce. We will see.”
“Obama’s plan will kill homeownership and we will be slow slow slow. This is because we will see inflation like we did under Jimmy Carter who was nearly as foolish but nothing compared to these older hippies that will run our government towards communism starting first with socialism.”
“The hope is that the stimulus package will at least get more first time home buyers into the market to start a domino effect in getting homes sold and lowering the inventory.”
“I think Obama’s package will take some time to see the housing market correct itself, but I do have hope that it will work.”
“I believe the tax credit will help with buyers on the fence.”
“I think the stimulus package will help somewhat, but is not enough.”"
“I think the stimulus package might bring out more first time buyers but they typically want to spend less than $100,000. Right now I have about six buyers who are looking anywhere from $20,000 to $90,000,” wrote Deborah Chapel of Ypsilanti Mississippi, HomeGain AgentEvaluator member.
“Buyers are already jumping on the advantage of the stimulus package. They have finally gotten off the fence and we are hopeful for a good spring/summer market.”
“The only part of the stimulus I think will have an effect is the tax credit. I hope there is some marketing associated with it to let more peple know about it.”
“Obama stimulus will help the current market of houses and that will stabilize home prices, but I believe it will be short term,” noted Tyla Jackson of Bethlehem, Pennsylvania.
Additional Commentary from Surveyed HomeGain Members:
BLAME THE MEDIA
“The media has ruined our real estate market.”
“The media, more than reality, is hurting our market. President Obama’s plans seem to be able to help us.”
“Still a lot of negative remarks in Media to counter the market trying to come back.”
BLAME THE MORTGAGE BROKERS
“I wish the news media would quit saying people bought homes they could not afford. This is not correct. Buyers bought homes they could afford, they did not know their taxes and insurance would go up 4 to 10 times the original cost. They did not know they were going to lose their jobs, or their hours cut back and their salary is half of what they were making at the time of purchase. They were not told the truth from mortgage brokers regarding the ARM rates.”
To view the state survey data, click here.
HomeGain real estate survey results are based on responses of nearly 700 Realtors in the U.S.
*Regions are divided as follows:
Get home prices in United States cities
March 31, 2009 – New York home prices drop 9.6 percent year over year in January – The New York Daily News
April 14, 2009 – Economist predicts 15% drop in New York area home prices – Bloomberg
March 23, 2009 – Chicago home prices fall 24.7% as home sales plummet 40.4% - Chicago Tribune
March 31, 2009 – Los Angeles home values dropped 26% year over year – Los Angeles Times
April 4, 2009 – Houston home prices fell in more than 2/3 of the 2000+ Houston neighborhoods for the first time in 14 years according to the Houston Chronicle.
April 2, 2009 – Philadelphia pending home sales down 7.7% from January to February – Philadelphia Inquirer
March 31, 2009 – Phoenix home prices drop 35% year over year in January – Phoenix Business Journal
April 8, 2009 – Home sales jump as median San Diego home prices for singe detached homes drop in March 2009 from $335K to $325K the previous month according to Channel 6 News in San Diego.
March 23, 2009 – Detroit home prices drop 50% year over year. Median recent home sale price is $41,000 – The Associated Press
April 13, 2009 - Median Indianapolis home prices fall 12.2% in March year over year to $108,805- Inside Indiana Business
March 25, 2009 – San Francisco home prices down 30% year over year. Forbes
April 3, 2009 – Seattle home prices down 14.3% in January year over year – The Street
April 12, 2009 – Bank owned properties comprised 11% of the market, five times as many as two years ago. Boston Herald
April 3, 2009 – Denver home prices fall 14.3% in January 2009 compared to January 2008- The Street
April 9, 2009 – Las Vegas median home price down 38.7% in March from a year earlier – Las Vegas Review Journal
March 31 2009 Portland home prices drop 14% in January year over year- Oregon-Live.
April 3, 2009 – Oahu home prices down 4.5% in March. Honolulu Advertiser
Surveyed HomeGain Agents’ Commentary:
“Differences between seller and buyer are still too great — they just don’t get it yet.”