Optimism Returns to Market

According to the latest HomeGain survey, optimism has returned to the market. The 1st quarter National Home Values Survey found that 37 percent of real estate professionals expect to see home values increase. This is up from 15 percent last quarter.

"Real estate professionals have grown more optimistic regarding the direction of home prices, especially in the states that have been hardest hit in the past few years, like Arizona, Nevada and Florida and also in states that have done comparatively well, like Massachusetts and Virginia." said Louis Cammarosano, General Manager of HomeGain.

A quarter of homeowners are feeling the same optimism. Twenty-five percent reported they expect home values to increase as opposed to 15 percent last quarter.

The survey also found that:

• Twenty-two percent of real estate professionals expect home values to decrease in the next six months, down from 42 percent from last quarter.

   

• Twenty-nine percent of homeowners expect home values to decrease in the next six months, down from 37 percent from last quarter.

   

• Forty-one percent of real estate professionals and 46 percent of homeowners believe home values will stay the same in the next six months.

   

• 77 percent of homeowners believe their homes are worth more than the recommended agent listing price.

   

• Likewise, 62 percent of home buyers believe homes are overpriced.

Things got political in the 1st quarter survey with over half (52 %) of agent and brokers indicating they "strongly disapproved" and "somewhat disapproved" (14%) of Barack Obama’s performance as President, earning him a 66 percent disapproval rating, an increase of two percent in the disapproval rating of agents and brokers surveyed in the first quarter of 2011.

This rating was down 4 percent, however, from the fourth quarter of 2011 when the President had a 70 percent disapproval rating among agents and brokers.

For homeowners, the disapproval rate had fallen as well from the 4th quarter of last year. The survey found that "forty-one percent of homeowners "strongly disapproved" and 15 percent "somewhat disapproved" of the President’s performance, earning him a 56 percent disapproval rating. The President had a 60 percent disapproval rating last quarter among surveyed.