According to a new survey from Zillow.com, Americans are totally out of touch with reality when it comes to their homes. 62% of homeowners surveyed said they thought their homes had appreciated in value over the past year. In fact, only 19% of homes in the US increased in value, and 77% actually decreased in value. (5% stayed the same.)
Stan Humphries, Zillow’s vice president of data and analytics, said in a statement that the gap between what consumers believe their homes are worth and actual values is due to “a combination of inattention and a fair bit of denial that causes people to believe their home is insulated from the woes of the market that affect others, but not them.”
“Although many homeowners may believe the worst is over, we think this level of optimism is out of sync with actual market performance,” Dr. Humphries said.
The survey also found that more than 90 percent of homeowners report that foreclosures have occurred in their local market already.
Are you in denial about the value of your home?
Zillow Finds Homeowners Confident in Own Home Value [Wall Street Journal Development Blog]
(Photo: Joy of the Mundane )