RealEstateEconomyWatch.com

Half of agents and 42 percent of homeowners in a second quarter survey expect home values to decrease or stay the same through the end of the year. Thirty-eight percent of real estate agents and brokers and 43 percent of homeowners think that home values will remain the same in the coming six months, according a second quarter survey.

The findings show that both agents and owners are growing more pessimistic.  In the first quarter 2011 HomeGain National Home Values Survey, 39 percent of agents and brokers and 30 percent of homeowners thought that home values would decrease over the next six months.  In the second quarter, 50 percent of agents and brokers and 42 percent of homeowners think that home values will decrease over the balance of the year.

Only 12 percent of real estate professionals expect home values to increase in the next six months, down from 17 percent last quarter. Fifteen percent of homeowners expect home values to increase in the next six months, down from 24 percent last quarter.

According to surveyed agents and brokers, 77 percent of homeowners believe their homes are worth more than the recommended agent listing price. In contrast, 67 percent of home buyers believe homes are overpriced.  Over 750 real estate agents and brokers and over 2,600 homeowners were surveyed.

“The current survey reflects that real estate professionals are resigned to accepting a market with declining prices being the norm rather than the exception. The past few years have been particularly harsh on the real estate industry and the majority of real estate professionals don’t expect much improvement in the coming six months.” said Louis Cammarosano, General Manager of HomeGain.