Nearly half (49 percent) of U.S. homeowners believe their home has increased in value or stayed the same during the past 12 months despite data to the contrary, according to Zillow’s Q3 Homeowner Confidence Survey. Nearly three-fourths of all homes (74 percent) have lost value in the past 12 months, Zillow reports.
Homeowners are slightly less optimistic about the future than they were last quarter, but believe the housing market will be more stable in the next six months than it was during the last 12 months. While more than half (51 percent) of homeowners believe their home’s value decreased over the past year, only 40 percent think it will decrease in the next six months. Only 21 percent think their home’s value will increase in the next six months compared with 32 percent who predicted an increase during the second quarter.
“We are seeing some movement toward more accurate perceptions of home value declines, but there’s still a significant gap between reality and perception,” says Dr. Stan Humphries, Zillow’s vice president of data and analytics. “We’re seeing a fascinating distinction in consumer psychology — on the one hand, homeowners appear to understand the reality of today’s economy and are curbing their household spending, but on the other hand, they still aren’t ready to admit that these woes might extend to their own homes. There’s clearly still some denial,” he says.