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HomeGain Survey Point to Continued Home Price Declines

In a survey of over 500 real estate agents and 2.200 homeowners, HomeGain found that 47% of agents and 43% of homeowners expect to see home values decline over the next six months.

When comparing the results from the nationwide third quarter 2011 home values survey to the second quarter 2011 survey, the percentage of real estate agents who felt home values would decline in the coming months fell from 50% to 47%.  However, the number of homeowners who are predicting a decline jumped from 30% to 43%.

Only 11% of agents and 12% of homeowners see home values increased over the next six months.

Looking regionally, the attitudes in the West and Midwest faired the best in the survey with 42% and 41% of agents seeing a decrease in the next months.  The Northeast has the most negative view at 62% expecting a decrease.  The Southeast region was the most mixed with 48% seeing a decrease, 35% expecting no change and 16% pointing to an increase.

“Homeowners have joined real estate professionals and now share their dour view on the direction of home prices. Last quarter only 30 percent of homeowners expected home prices to drop in the coming six months while 50 percent of real estate professionals expected price declines. In the current survey 45 percent of homeowners and 47 percent of real estate professionals expect home price declines in the next six months,” said Louis Cammarosano, General Manager of HomeGain.

Providing a perspective on how homeowners view their own properties, 75% believe that their homes are worth more than the listing price recommended by real estate agents.  Conversely, 66% of home buyers reel that homes are over priced.

The same survey asked respondents to rate the performance of Barak Obama as President.  Fifty-five percent of agents stated they "strongly disapproved" of his performance with 17% stating "somewhat disapprove."  For homeowners, 47% "strongly disapproved" and 16% "somewhat disapproved."

The survey was conducted between August 25 and September 4, 2011.

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