Recovery Could Bring a Flood of Listings
If the real estate market were to show real signs of coming back to life, would you put your home up for sale? Plenty of people say they would.
According to a new survey released by the Zillow real estate Web site, about 32 percent of homeowners surveyed said they would be at least somewhat likely to do so. And Zillow officials said if there really is that much pent-up supply out there, it could seriously weigh down an eventual housing recovery.
Harris Interactive conducted the online survey for Zillow earlier this month. They surveyed 2,123 adults, including 1,357 homeowners. The respondents were asked whether they would put their house on the market if they see signs of a real estate market turnaround in the next 12 months. Twelve percent said they would be "very likely" to do so. Another 8 percent said they would be "likely," and 12 percent said they would be "somewhat likely."
Stan Humphries, vice president of data and analytics for Zillow, estimated that, extrapolating from just the "very likelies" and "likelies," about 20 million homes could be added to the for-sale inventory. Some of those sellers, he noted, would also be buying a replacement home. That would clear out inventory as well as add to it, but he said the effect still could be a drawn-out recovery as sellers jump on any improvement as an opportunity to finally get rid of their homes. "When there's clear improvement, the market could get temporarily flooded with inventory," he said. "It could result in a recovery where you could have lots of fits and starts as things improve moderately."
One amusing point from Zillow's study: We must be living in Lake Wobegon, where all of the children are above average. Thirty-seven percent of those surveyed said they expect values in their local housing market to decrease over the next six months. But only 26 percent thought their own home's value would decrease.
The (Can't Wait For The) Weekend Poll
May 14, 2009; 6:00 AM ET
Categories: Selling , Statistics , The economy , The market , Weekend Poll
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