SEATTLE – Feb. 7, 2008 – Despite highly publicized reports of a home sales slump and pricing slides, homeowners remain upbeat. While most homes have decreased in value nationwide, 77 percent of owners believe their own home has either held its own or increased in value, according to a recent survey conducted by Harris Interactive for Zillow.com.
In addition, many homeowners – not just those who believe their homes appreciated in 2007 – plan to improve their home in 2008:
• 82 percent will spend the same or more on minor home improvements (install new garbage disposal, repaint or wallpaper a room).
• 67 percent say they will spend the same or more on major home improvements (replace the roof, remodel the kitchen) this year.
• About a third say they are more likely or equally as likely to: take out a home equity loan (35 percent); refinance their mortgage or take out a second mortgage (36 percent); or sell their homes (34 percent).
What’s driving homeowner perception?
“This survey reveals that, despite data to the contrary, people either aren’t paying attention to their housing market or are in denial about their own home’s value,” says Dr. Stan Humphries, Zillow.com vice president of data and analytics. “This likely reflects the fact that most Americans have not realized home-related losses because they’re staying in their homes. Even in declining markets where a greater percentage of new homeowners are underwater on their mortgage, it’s important to remember most people are not really affected by declining values unless they absolutely must sell or need to immediately refinance or withdraw equity.”
© 2008 FLORIDA ASSOCIATION OF REALTORS®