I can think of many explanations for the stagnation of the U.S. housing market.
Among those that come to mind are consumer confidence, tight credit, the nation’s and world’s economies, and unemployment.
But a survey released by HomeGain that I recently came across may well rank near the top. I can’t imagine a more graphic illustration of our housing woes than the disconnect that the third-quarter survey disclosed between what sellers and buyers view as the value of homes.
Although I learned only that more than 500 real estate agents and brokers in addition to 2,500 homeowners responded to the questions, I’ll make the rash assumption that the survey’s methodology was scientific. If so, consider this startling information:
According to surveyed agents and brokers, 75 percent of homeowners believe their homes are worth more than the recommended agent listing price. In contrast, 68 percent of home buyers believe homes are overpriced.
No wonder buyers aren’t making offers. And when they do, no wonder that homeowners aren’t budging on the price.
Another result also bears attention: While 50 percent of agents and brokers thought that home values would decrease over the next six months, only 30 percent of homeowners came to the same conclusion.
Truth be told, I don’t really know how valid the research is, but it certainly offers food for thought. One thing I know: The survey reflects what I have been witnessing in a significant portion of the Manhattan market.
Tomorrow: Results of city’s auction of Manhattan properties
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022