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Phoenix Real Estate Blog: Survey Says, Homeowners More Optimistic About the Future

By
Real Estate Agent with Sterling Fine Properties AZDRE# BR553129000

 

As I was driving to meet a client yesterday, I was listening to NPR and the story was about the economy.  The central question, as it always is, was whether or not we’ve hit bottom.  I won’t go into the details, I mention it only to recall what the interviewee said, “At the end of the day, you have to look at yourself, look at your neighbors – how are you feeling about the economy?  Are you spending money?” 

In other words, the economy won’t really begin to recover until consumers start spending again.  And that won’t happen until consumers have confidence in the strength of the economy.

The same is true in the housing market.  Real estate prices won’t recover until homebuyers (not only speculators) feel that it’s the right time to start buying again. Increased demand will eventually put upward pressure on prices.  But it all starts with confidence.

So I was thrilled when I got back to the office last night and read that Zillow.com’s Homeowner Perception Survey had revealed that 30% of homeowners here in the West believe the value of their home will increase in the next 6 months.  51% believe home values will remain the same, and only 19% believe that home values will continue to fall over the next 6 months.  Nationally, 34% of homeowners believe their home’s value will increase; 47% believe it will stay the same, and 19% believe it will fall.

But. . .

While Zillow’s news is great news, and could bode well for the economy, we have to read it in context.  In the same survey, Zillow found that homeowner’s perceptions of the current value of their homes is still distorted. 

While 83% of all homes across the U.S. lost value in the second quarter of the year, only 60% of homeowners believed their homes had lost value.

While only 4% of homes had unchanged values, 19% of homeowners believed their home’s value had not changed.

While only 13% of homes gained value, 22% of homeowners believed their homes had increased in value.

In the Phoenix metro area, though, optimism (at least that prices won’t continue to fall) seems warranted.  Price declines in the Phoenix area have been less steep over the past months (comparing prices to a year ago), which is a clear signal to many experts that the market has bottomed and is turning around.  Yes, prices are still down compared to last year, but they’re down less -- and that’s the road to eventual price increases. 

According to housing market analyst RL Brown, “It is obvious from the data that we collect and analyze on the Phoenix metro housing market that the market indeed continues to improve in almost all sectors.

Onward and upward.

What do you think?  What’s your perception of housing prices and home values in the Phoenix area?  Click on the “Comments” link below and join the discussion!

 

 

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I specialize in selling Phoenix real estate -- Scottsdale homes and Phoenix homes, including Phoenix short sales and bank owned homes. To see my listings and learn more, visit www.MyPhoenixMLS.com.

MyPhoenixMLS Real Estate

 

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