Current Events, Opinion

Not my house!

Perception and reality. It’s an interesting thing how people will believe what they want, despite any and all facts to the contrary.

Real estate web site Zillow.com released a survey today showing the difference between what we want to believe and what’s really going on in the real estate market. And according to the survey, conducted by Harris Interactive, 62 percent of Americans believe that their homes have maintained or increased in value in the past year when in fact 77 percent of homes have actually seen their home values fall.

It’s called the “Not My House!” sentiment, and Zillow created a Home Value Misperception Index to measure it – by taking the difference between the percentage of homeowners who believe their home increased in value and the percentage that actually did.

Nationwide, that Home Value Misperception Index sits at 32.

In the south, a whopping 48 percent of homeowners thought that their homes gained value in the past year. 23 percent thought their home’s value stayed the same.

The truth: only 26 percent of homes increased in value in the south, which led the nation with a Home Value Misperception Index of 36.

It’s an interesting statistic, though not actually useful for much. Still, it illustrates an important point to real estate investors and ordinary home sellers alike: that in buying or selling a home, you have to be realistic about that property’s value – and the chances are more likely than not that you aren’t.

 

The Misperception Index

The Misperception Index - Click to Enlarge

 

 

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