Homeowner Misperception Index

Zillow.com has this neat survey showing the sentiment and (IMO) delusion of homeowners regarding the prices of their homes and how they are the most optimistic they have been in over a year. It is really fascinating. On to the charts.

Along with growing misperception is a growing optimism that home values will not continue their declines in the coming six months. For three quarters in a row, homeowners have effectively called a bottom, with the majority thinking their home’s value will not decline any further. This quarter, the number of “optimists” was our largest yet:

• 34% think their home’s value will increase
• 47% think their home’s value will stay the same
• 19% of homeowners think their home’s value will decrease

The most optimistic bunch are homeowners in the South and Northeast, where fewer markets experienced a “bubble,” and where home value declines haven’t been as precipitous as many major cities in the West.