Posts Tagged ‘recession’

Homeowner Confidence Still Low

September 1, 2010

Home Owner Confidence in the Housing Market is still lowThe media tells us that the housing market has stabilized, but homeowners aren’t so sure. A recent report by Zillow.com shows that homeowner confidence has dropped in the second quarter of 2010. One-third of homeowners believe that home prices can still go lower.

Nationwide, only 24 percent of homeowners think their home has increased in value in the past year, even though 34 percent of homes are actually worth more than a few months ago.

Perhaps some of the reason is because many believe that the economic recovery is temporary. The nation as a whole is indeed teetering on the brink, with the national debt closing in on the gross domestic product for the first time since the Great Depression. Many economists are predicting a second dip, and even a full-blown depression, as early as 2011.

On the other hand, history shows that significant economic recessions and depressions tend to result in American’s feeling less secure for decades to come. How many of us recall the oddly frugal habits of our parents or grandparents that were a direct result of the Great Depression? Many of their generation didn’t even trust banks to hold their money and instead invested their savings in jars buried in the backyard.

Zillow’s report also showed that “27 percent of homeowners believed their own homes’ values would increase in the next 12 months, 35 percent believed they will stay the same, 12 percent expected a decrease and 26 percent did not know.”

Western homeowners, including those here in Arizona, who do expect a rise in home values, are hoping for a 10 percent jump. Northeastern homeowners also expect that 10 percent, but the rest of the nation is coming in closer at a hopeful 5 percent.

There are also many homeowners who want to sell their house, but have not had any success or just haven’t bothered. They are waiting for sure signs of stability and rising prices to put their homes on the market.

Unfortunately, the potential of 3.8 million new homes on the market could cause those rising home prices to slow or even stop. The higher the inventory, the more homes buyers have to choose from and the more sellers have to lower their prices. It’s a buyer’s market, but most homeowners want to see a seller’s market.

What can we expect? The housing market is sure to recover eventually, but that recovery may not be as fast as many would like to see. Zillow suggests for three to five years after “the bottom” that the housing market will grow at a very slow rate until the inventory levels out.


If you are in worried about the housing market, give the Curtis Johnson team a call. The Curtis Johnson Team is helping individuals who are facing foreclosure and those who are seeking their dream homes.

Go to www.CurtisJohnsonRealty.com or call 1-888-Curtis-J.