US homeowners ‘overpricing’ properties

Many US homeowners looking to sell their properties are overvaluing their abodes and pricing them significantly above the current market value, research has revealed.
According to a survey by Zillow, people who bought real estate in or after 2007 are overpricing by 14.1 per cent on average.
It is buyers who made a purchase between 2002 and 2006 who are the most realistic, as they tend to place their properties on the market at 9.3 per cent above their actual worth.
Those who bought before 2002 ask for 11.6 per cent over the true value, the study added.
Chief economist at Zillow Dr Stan Humphries commented: "Overpricing homes causes them to stagnate on the market and keeps inventory from decreasing – not a desirable outcome for either the sellers or the market as a whole."
Earlier this month, the Clear Capital Home Data Index revealed that house prices in the US fell by 3.2 per cent over the first six months of 2011, with a further decline of 2.4 per cent anticipated by the end of the year.