Homeowners, especially those who bought around the time the bubble burst, are in denial over how far their particular homes have fallen despite what the market is doing, according to Zillow, a real-estate analysis firm.
Sellers who bought in 2007 or afterwards are overpricing their homes on average 14 percent, Zillow reports, according to the New York Times.
Even those who bought well before the peak still think their homes are worth more than they are really worth, and those who bought after 2007 think they escaped the worst of the fallout and are therefore overpricing themselves, Zillow adds. That's too bad.
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"The buyer doesn't care what you paid or what your mortgage is," says Stan Humphries, Zillow's chief economist.
Things aren't going to get better any time soon, Humphries adds.
Home values are going to continue falling through the middle of next year due to high unemployment rates, too many homes in foreclosure and too many homes with negative equity
A return to a "normal" market is likely at least three away, Humphries tells the newspaper.
Home sales fell 0.8 percent in June to a seasonally adjusted annual rate of 4.77 million homes, the National Association of Realtors reports. That's far below the 6 million homes per year that economists say represents a healthy housing market, the Associated Press reports.
"It all goes back to uncertainty about the future and hiring," says Jennifer Lee, senior economist at BMO Capital Markets, the Associated Press adds.
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