RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Homeowner Confidence Shrinks to Lowest Level on Record

Home Marketing
February 18, 2010
Reading Time: 2 mins read

RISMEDIA, February 18, 2010—American homeowners’ confidence in their own home’s value during the fourth quarter fell to the lowest level in seven quarters, with just one in five (20%) believing their own home’s value increased during 2009, according to the Zillow Q4 Homeowner Confidence Survey. In reality, 28% of homes increased in value during the year, according to Zillow’s Fourth Quarter Real Estate Market Reports.

That resulted in a Zillow Home Value Misperception Index of negative two–the closest to zero on record since Zillow introduced the index in the second quarter of 2008, when the index was at 32. A Misperception Index of zero would mean homeowners perceptions’ were in line with actual values. A negative Misperception Index indicates that homeowners are overly cynical about their own home’s value when compared with reality. This is the first time the national index was negative.

Half of homeowners believe their own homes lost value during 2009, while 30% believed their home’s value stayed the same. In reality, 65% of homes lost value during the year, and values remained the same for 7%.

“Not My Home” Sentiment Fades as Homeowner Attitudes Shift
The results demonstrate the “not my home” sentiment that was once prominent among American homeowners has faded. One year ago, nearly half (47%) of homeowners believed values in their local market would decrease in the next six months. However, when asked about their own home, fewer than one in three (30%) believed their own home’s value would decrease.

Now that gap has shrunk, with 22% of homeowners believing their local market will lose value over the next six months and 14% believing their own home will lose value. “Homeowners are finally succumbing to the notion that, in most areas, declining home values over the past year are no longer the exception, they are the rule,” said Dr. Stan Humphries, Zillow chief economist. “Almost three times as many people believe their home’s value will increase over the next six months as believe it will decrease in value, a level of optimism that is likely to outpace actual performance in the near-term. Given recent news about the stabilization of home values in some markets, I can see why homeowners are so optimistic. However, home values in many markets are still under substantial downward pressure from high levels of foreclosures and we don’t believe we’ll see a definitive bottom nationally until the second quarter of this year. We’re not out of the woods yet.”

About Own Homes’ Values:
Homeowners in the Northeast and West are overly cynical about the value of their home. Three-quarters (78%) of Northeastern homeowners said their home lost value or stayed the same in the past year when just over half (58%) of the homes actually did. This disparity between perception and reality resulted in a Misperception Index of -14, making Northeasterners the least aligned with reality. Western homeowners, who were the most optimistic and the least aligned with reality last quarter, did an about-face in the fourth quarter. They now are slightly cynical with a Misperception Index of -5.

For more information, visit www.zillow.com.

ShareTweetShare

Related Posts

Beyond Commissions: How Two Leading Brokerage Firms Are Redefining Agent Compensation
Agents

Beyond Commissions: How Two Leading Brokerage Firms Are Redefining Agent Compensation

October 3, 2025
zillow
Agents

Zillow Seeks to Scrutinize Anywhere-Compass Deal for Inconsistencies With Lawsuit Claims

October 3, 2025
Consolidation
Agents

The Consolidation Trend: A Look at the How, Why and Outcomes

October 2, 2025
Forbes Global Properties Welcomes Rhode Island’s Flagship Real Estate Advisors to its Network
Industry News

Forbes Global Properties Welcomes Rhode Island’s Flagship Real Estate Advisors to its Network

October 2, 2025
Final Offer Launches in Denver and the Front Range in Partnership With Several Colorado Brokerages
Industry News

Final Offer Launches in Denver and the Front Range in Partnership With Several Colorado Brokerages

October 3, 2025
Lone Wolf Technologies Expands Partnership with the California Association of Realtors®
Industry News

Lone Wolf Technologies Expands Partnership with the California Association of Realtors®

October 3, 2025
Tip of the Day

Stop Relying on “I Tried”

Most people don’t fail because they’re untalented—they fail because they settle. If you’ve been in a rut, this might be for you. Learn more.

Business Tip of the Day provided by

Recent Posts

  • Beyond Commissions: How Two Leading Brokerage Firms Are Redefining Agent Compensation
  • Zillow Seeks to Scrutinize Anywhere-Compass Deal for Inconsistencies With Lawsuit Claims
  • The Consolidation Trend: A Look at the How, Why and Outcomes

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X