Just 15% of homeowners surveyed in January expected their homes to decline in value over the next year, the lowest level since early 2007. It should be noted that the last time a lower percentage of homeowners expected their homes to fall in value, home prices promptly tanked.
A couple things to note here:
- With so few sellers expecting further price declines, non-distressed sellers may feel less temptation to sell quickly to low-ball bidders before values fall further. That could help stabilize prices, even if hurts sales volume.
- Now that the worst appears to be over, buyers may move off the sidelines and into the market, hoping to "get in at the bottom".