Homeowners massively off true house price
Homeowners massively off true house price
Friday 14th November 2008
The average homeowner thinks their house dropped £1,233 in value in the last three months, 60 times less than actual falls.Research by Impartial.co.uk shows the average mortgage holder now estimates the value of their property to be worth £200,998 – down from £202,231 three months ago.
This represents a drop of less than 0.1 per cent, compared to land Registry figures showing a 6.1 per cent drop.
Homeowners under the age of 34 actually believe the value of their property is still increasing.
Karen Barrett at Impartial.co.uk said: "It is worrying just how much we are under-estimating house price falls.
"Whilst no homeowner likes to think that they have lost money on a property – the important thing to remember is your home is much more than just an investment."
Meanwhile, estate agent Cluttons points to owners already trying for a sale are becoming more realistic about prices.
James Hyman, partner for residential sales at Cluttons, said: "Those people who need to sell their homes are realising it is not an option to sit tight and wait for prices to recover.
"This is good news for the sales market, which has been stalled in part by the reluctance of sellers to recognise that their homes are worth considerably less than they were a year ago.
He added: "There are plenty of buyers out there at the right price, especially in the mid-market, with large enough deposits to access finance, and there are deals to be done with reasonable sellers."
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