Tuesday, Feb 12, 2008
UK Title: A Pathological Bubble for Homeowners
NY Times: A Psychological Bubble for Homeowners
Denial can be a powerful psychological force.
According to a survey released earlier this week by Zillow.com, the real estate Website that calculates home values, denial is precisely what appears to be at work in the minds of many homeowners across the United States. They have managed to convince themselves that, despite ample evidence to the contrary, their homes actually increased in value in 2007, or remained the same.
Posted by yt1 @ 01:20 PM (299 views) Add Comment
2 Comments
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1. cornishman said...
One of the comments under the article should be of interest to anyone trying to sell now and thinking that they can afford to wait for a 'good price' for their house, or wait 'for the market to pick up'. House prices are set by those that actually change hands - which might not be yours...
" There are three homes on my block which have been on the market for tnree or more months and their prices are still the same. In the meantime houses that are just coming on the market and compare in type and size are going for $100,000 dollars less."
— Posted by James Finley
2. little professor said...
Yep, I see the same phenomenon here. Stubborn sellers who have had their house on the market for 3+ months are refusing to lower the price by any significant amount, as they don't want to accept less than they have originally had it valued at .
Meanwhile new vendors' houses have been valued more realistically by EAs and are priced to sell.