Zillow Homeowner Confidence Survey

Source: Zillow.com

Zillow recently released its first quarter Homeowner Confidence Survey which found that, while homeowner confidence rose nationally, Western homeowners remain pessimistic about home values despite stabilization in many Western markets. Additionally, a potential 5 million ‘sidelined sellers’ are very likely to put their home on the market with signs of a turnaround, forcing home values to hover near the bottom for an extended period of time.

Topline Results

Seven percent of homeowners (which translates to 5.3 million sidelined sellers) are “very likely” to put their home on the market in the next 12 months if they see signs of the housing market improving.
Only half (50 percent) of homeowners believe their own home’s value declined in the past year. In reality, 65 percent of U.S. homes declined in value, according to Zillow’s Q1 Real Estate Market Reports.
National homeowner confidence is up overall, but regional results vary substantially, with Westerners overly pessimistic about home values, while Southerners are overly optimistic.

Additional Resources:

For additional information about the Q1 Homeowner Confidence Survey, check out the press release, summary PDF, Zillow Blog and graphics (see below). To download the graphics in larger format or request an interview, contact Zillow PR at press@zillow.com or 206-757-2701.

Methodology

The survey was conducted online by Harris Interactive within the United States on behalf of Zillow.com between April 5 and April 7, 2010 among 2,024 adults ages 18+, of whom 1,428 are homeowners. This online survey is not based on a probability sample and therefore no estimates of theoretical sampling error can be calculated. A full methodology, including weighting variables and survey results, is available by contacting press@zillow.com.

The Zillow Home Value Misperception Index measures the gap between homeowner perception of changes in their home’s value as reported in the quarterly Homeowner Confidence Survey conducted by Harris Interactive, and actual home value changes as reported by Zillow in its quarterly Real Estate Market Reports. The Misperception Index is calculated from an adjusted base of homeowners who think their home value changed – increased or decreased – and excludes “not sure” AND “remained the same” responses. The Index is the difference between those who think their home’s value increased (35% adjusted, from survey) and the percent of U.S. homes that actually increased (30% adjusted, Zillow Q1 data) in value year-over-year on an adjusted base of home values that changed by more or less than one percent (excludes homes that remained the same within one percent). Zillow Q1 data is based on analysis of Q1 Real Estate Market Reports.

According to the U.S. Census Bureau, there are 76 million owner-occupied homes in the United States, 7 percent of which is 5.32 million.

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