Emeryville, California-based HomeGain, a provider of online marketing solutions that connect real estate agents and brokers with homebuyers and sellers, released the results of its fourth quarter Home Prices Survey of Realtors on Thursday.

According to the survey, which was based on responses of 928 real estate agent and brokers across the United States, most respondents believe home prices will either stay the same or increase in the next six months. Of those surveyed, 48 percent believe prices will stay the same, 24 percent project an increase in prices, and a mere 28 percent believe prices will decrease.
The fourth quarter results are similar to those of the third quarter survey when 46 percent of Realtors believed prices would stay the same, 23 percent thought prices would increase, and 31 percent projected prices would decrease. However, the most recent survey results are notably different from the first quarter responses when 36 percent of respondents thought prices would stay the same, only 11 percent believed prices would increase, and 53 percent projected decreased prices.
As for homeowners, the survey results showed that 76 percent of home sellers believe their homes are worth more than their listing price, compared to 74 percent in the third quarter survey. Additionally, 41 percent believe their homes should be listed 10 to 20 percent higher than what their realtor recommends, up from 38 percent of homeowners who believed this in the third quarter.
Homebuyers, however, thought the opposite. According to the survey, 62 percent of homebuyers think homes are overpriced, down from 64 percent in the third quarter and up from 59 percent of homebuyers who thought so in the first quarter.
Buyers think prices are still heading down, while sellers think prices are now heading up. It’s our job to bring them together.” said Jerry Gooze, a survey respondent of Pinnacle Estate Properties.
The survey also collected responses related to first-time homebuyers. According to the survey, 21 percent of Realtors surveyed said more than half of their transactions in the past three months involved a first-time homebuyer, and only 11 percent of Realtors said that none of their transactions involved a first-time homebuyer.
“The fourth quarter HomeGain Home Prices Survey of Realtors shows that realtors believe that the first time home buyers tax credit has driven sales and stabilized home prices, for now,” said Louis Cammarosano, GM at HomeGain. “Realtors, however, expressed concerns about the cost of the credit to tax payers and whether sales will continue once the credit expires later next year and additional inventory hits the market.”
Author: Brittany Dunn
• Date: 12/11/2009