Property owners in the US
are overvaluing their homes, new research has revealed. A study carried out by Zillow
discovered that those who made a purchase in 2007 or later are, on average, overpricing by 14.1 per cent. Meanwhile, people who invested in real estate earlier on are still asking for too much, but are more realistic about their property's true value, the survey found.
Dr Stan Humphries, chief economist at Zillow, explained that overpricing is bad for the market and urged homeowners to sit down and calculate how much their asset is worth based on current economic conditions.
Meanwhile, new figures published by Clear Capital in its Home Data Index revealed that despite an overall downward pressure on house prices across the US, some metropolitan markets are beginning to stabilise - most notably in New York, Washington DC, Dallas, Orlando and San Francisco. The organisation predicted that these regions are likely to experience "modest gains" by the end of 2011.
- Wednesday 20 July 2011