All across the country home values have been free-falling. It's a matter highly covered by the media, and something many people have experienced first hand. But an article in the San Francisco Chronicle written by James Temple says that most homeowners believe the value of their property has either stayed the same or risen during the year.
62% of homeowners, in fact. According to Zillow (a real estate web site) the market price on 77% of properties has fallen while only about 24% have gone up or at least held tight.
How can so many people think the crisis hasn't touched them? When you consider how large a part a home plays in a family's assets, it's easier to see why people can delude themselves. No one wants to admit their biggest investment has lost 25% of its value.
If you're planning on staying in your house for the next five years or longer, all this really shouldn't affect you that much. If you are trying to sell, however, it's important to educate yourself on the current market in your area and take stock of changes. Think about how you might need to readjust your idea of what the house is worth, and try to be realistic.
A reassuring quote from the article for us Silicon Valley dwellers---
"The Zillow survey of 1,361 homeowners, conducted by Harris Interactive, didn't break out figures for California or the Bay Area specifically. Malcom Kaufman, a Realtor with McGuire Real Estate who focuses on San Francisco, said local sellers are generally more informed and realistic about the condition of the market."
No comments:
Post a Comment