It's another look backwards, but the new Zillow Home Value Report for Q-4-2007 has some interesting things to say.

It's the first of it's kind that tracks values, not sales, pendings or listings. Using both homeowner equity and negative equity data, the Zillow report covers the nation through 125 metro markets, or 67 million homes.

The Q4 2007 report found that home values fell over three percent (3.3 percent) from Q3, and 3 percent year-over-year for all homes. Condos and single-family residences experienced the most significant value declines of 7.4 percent and 5.5 percent respectively, which contradicts the National Association of Realtors sales figures.

The NAR found that condos sales for all of 2007 fell 11.0 percent to 713,000 units, and single-family home sales fell 13.0 percent to 4.94 million.

That raises an interesting question -- are homeowners being realistic about the value of their homes?

Zillow says no. Many U.S. homeowners saw equity slip while other homeowners found themselves owing more on their mortgage than the home is currently worth. Nationwide, those at most risk of being underwater on their mortgage are those who bought in the last two years when most markets peaked. Of those who bought in 2006, 39 percent now have negative home equity as do 30 percent of those who purchased in 2007. By comparison, only 3 percent of those who purchased five years ago, in 2003, and less than one percent of all homes in the U.S., regardless of when they were purchased, have negative equity.

Yet, when Zillow did a survey, the online community found an incredible level of homeowner optimism or denial, depending on whether you're a glass half full or empty kind of person.

A whopping 77 percent of participating homeowners across the country believe the value of their home has increased or remained the same in 2007.

And they plan to act on their beliefs. In 2008, homeowners said they plan minor (82 percent) to major (67 percent) remodeling, take out a home equity loan (35 percent) refinance or take out a second mortgage (36 percent) or sell their homes (34 percent.)

By then, low mortgage interest rates below 6 percent, the economic stimulus package, and pent-up demand from reluctant homebuyers may justify homeowners' sunny outlook.

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Published: February 12, 2008

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.