Forty-three percent of surveyed real estate professionals nationwide expect home values to stay the same over the next six months; Seventy percent disapprove of Obama’s performance as President; Mitt Romney edges out Barack Obama

HomeGain, the first company to provide free instant home valuations online, announced the results of its nationwide fourth quarter 2011 home values survey. Over 400 real estate agents and brokers and over 2,000 homeowners were surveyed. We also released the regional results of the fourth quarter 2011 HomeGain home values survey.

Most real estate professionals and homeowners continue to expect home values to stay the same or decrease through the end of the year. Forty-three percent of agents and brokers and 48 percent of homeowners think that home values will stay the same over the next six months.

Forty-two percent of real estate agents and brokers and 37 percent of homeowners think that home values will decrease in the coming six months.

Fifteen percent of real estate professionals expect home values to increase in the next six months, up four percent from last quarter. Fifteen percent of homeowners also expect home values to increase in the next six months, up three percent from last quarter.

In the third quarter 2011 HomeGain National Home Values Survey, forty-seven percent of agents and brokers and 45 percent of homeowners thought that home values would decrease over the next six months.

According to surveyed agents and brokers, 76 percent of homeowners believe their homes are worth more than the recommended agent listing price. In contrast, 68 percent of home buyers believe homes are overpriced.

“Homeowners and real estate professionals appear to be in sync regarding the direction of home prices. Home buyers and sellers, however, continue to remain apart as to home valuations with the vast majority of homeowners thinking their homes are worth more than their agents and the market are telling them,” said Louis Cammarosano, General Manager of HomeGain.

Fifty-two 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 70 percent disapproval rating, an increase of one percent in the disapproval rating of agents and brokers surveyed in the fourth quarter last year. Last quarter the President had a 72 percent disapproval rating among agents and brokers.

Forty-four percent of homeowners “strongly disapproved” and 16 percent “somewhat disapproved” of the President’s performance, earning him a 60 percent disapproval rating. The President had a 63 percent disapproval rating last quarter among surveyed homeowners with 47 percent “strongly disapproving”. The Rasmussen Daily Presidential Approval Index taken during the same period as the HomeGain Fourth Quarter 2011 Home Values Survey indicated that the President’s average disapproval rating was 52 percent with an average of 40 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 November 9 – November 20, 2011.

View all prior HomeGain national and state home prices surveys.

The fourth quarter 2011 regional results are available by clicking here.

Set forth below are the results of the third quarter 2011 and 2011 national home prices survey as well as the results of the fourth quarter 2010 survey. Also set forth below for selected questions is the national home owner response data for the fourth quarter of 2011. Click on each question to see complete results:

Questions and National 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?
11. If the Presidential election were held today, who would you vote for?

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Below are the regional results of the entire survey, categorized into four regions*, Northeast, Southeast, Mid-West and West. You can also check out the national results of the HomeGain 4th quarter 2011 home values survey. Questions and Regional 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?
11. If the Presidential election were held today, who would you vote for?

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On Monday September 26, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.

Listen to the show.

Part 1 (14:26)

Ryan and Louis discuss the impact that a winning sports team has on a city. Louis and Ryan discuss the Fed’s Operation Twist announced earlier in the week designed to keep long term interest rates low. Ryan notes that he doesn’t think it will do much good due to tighter lending standards. Louis notes that Operation Twist did not increase the Fed’s  balance sheet and comments that the net effect is to kick the can down the road and to make the road longer. Louis notes that the Fed’s maneuver protects itself against raises in short term interest rate. Louis notes its generally good for real estate as it drives the long term interest down but if credit is difficult it will be difficult to take advantage of. Louis noted that Operation Twist will make it easier for homeowners to refinance which isn’t necessarily good for the banks. Louis notes that the Fed’s action was not positive for the markets as more quantitative easing was expected. Louis notes that stimulus and interest rates are not the answer as we have had plenty of that in the past few years to little or no salubrious effect. Ryan notes that the expensive real estate market is robust while the less expensive real estate market is still doing poorly. Ryan notes that the DC metro housing market is doing well due to the decent jobs market and the relatively low level of foreclosures. Ryan and Louis discuss the pros and cons of purchasing a new home vs. an existing home. Louis and Ryan discuss the pros and cons of purchasing a short sale vs. a new home. Louis notes that the new home market is more important to the economy than the existing homes market and that each new home built creates three new jobs.

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Today’s real estate market is different than just a few short years ago. Before the downturn, seller’s knew they could sell and buyers didn’t worry about risk in real estate because everyone believed prices would always go up. If Buyer A didn’t want the house, you need not wait long before Buyer B submitted an offer. When the market began the turn as demand shrank and prices began falling, many agents made, what I think was a big mistake – they acted like cheerleaders. Instead of offering professional advice to a growing number of upside down homeowners in a confusing market, it seemed as though agents across the country were using their marketing materials to look out for a paycheck more than trying to help consumers

You may remember ‘Baghdad Bob’ from the Iraq War days holding press conferences where he would tell everyone how the Iraqi Army was destroying the infidel Americans and pushing them back to the sea. You could also almost hear the American tanks rolling by in the background as he was on TV. He wasn’t telling the truth. Everyone new he wasn’t telling the truth. Jay Leno had a great video of Baghdad Bob if you don’t remember.

Even in today’s real estate market, it’s still common to see agents say “It’s a great time to buy!” That has to be the worst possible thing we can say in this market. It’s so transparent – and it appears to be looking out for the agent and not the consumer to market with this message. Don’t be a real estate Baghdad Bob. The market may not be great for many potential buyers. If a consumer asks about the market or you are trying to convince someone that this is a great time do buy, you have missed the mark. Consumers want and need information more now than ever. They seek out agents who can distill information in a way they can understand and they want the truth. They also can sniff out Baghdad Bob the real estate agent a mile away. The truth is, it may not be a great time to buy. Maybe it is, may it isn’t. Don’t you think you should find out a little more before spouting off like that? Be real.

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With the economy uncertain, but interest rates low and foreclosures still making up a large percentage of available inventory, what do real estate professionals think about homeownership for their clients?

What do potential homeowners think?

Is homeownership still the best investment?

Are home prices going up or down?

Louis Cammarosano

Nearly half of surveyed real estate professionals nationwide expect home values to decrease over the next six months; Sixty-eight percent disapprove of Obama’s performance as President.

HomeGain, the first company to provide free instant home valuations online, announced the results of its nationwide 2010 fourth quarter home values survey based on the responses of over 1,000 current and former HomeGain members and over 2,300 homeowners.

Most real estate professionals and homeowners continue to expect  home prices to decrease or stay the same for the rest of the year and into 2011.

Forty-six percent of agents and brokers and thirty percent of homeowners think that home prices will decrease over the next six months. In the third quarter 2010 HomeGain National Home Prices Survey, forty-eight percent of agents and brokers and 33 percent of homeowners thought that home prices would decrease over the next six months.

Forty-eight percent of homeowners and 42 percent of  real estate agents and brokers think that home prices will remain the same in the coming six months.

Only 12 percent of real estate professionals and 22 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 20 percent expect home prices to rise over the next year.

Seventy-six percent of homeowners continue to believe their homes are worth more than the recommended agent listing price, down from 79 percent last quarter.

Sixty-nine percent of surveyed agents and brokers indicated that their home buyer clients think homes for sale are overpriced, unchanged from 69 percent last quarter.

Real estate professionals and homeowners continue to take a neutral to negative view on the direction of home prices citing current high inventory levels, continued foreclosures, and persistent unemployment. There also continues to be a disconnect between what homeowners and buyers think homes are worth.

Forty-nine 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 68 percent disapproval rating versus the 67 percent disapproval rating of agents and brokers surveyed in the fourth quarter last year. Last quarter the President had a 67 percent disapproval rating among agents and brokers.

Forty-two percent of homeowners “strongly disapproved” and 18 percent “somewhat disapproved” of the President’s performance, earning him a 60 percent disapproval rating. The President had a 60 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 4th Quarter 2010 home prices survey indicated that the President’s average disapproval rating was 54 percent with an average of 45 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 December 1-7, 2010.

View all prior HomeGain national and state home prices surveys.

The fourth quarter 2010 regional results are available by clicking here.

Set forth below are the results of the fourth quarter 2009 and 2010 national home prices survey as well as the results of the third quarter 2010 survey. Also set forth below for selected questions is the national home owner response data for the fourth quarter of 2010. Click on each question to see complete results:

Questions and National 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?

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