Optimism about home values

August 6, 2008 4:31:13 PM PDT
Do you think your house is worth as much today as it was last year?

With all the gloomy news about the tanking housing market, one would think most people would be equally pesimistic about the value of their homes, but surprisingly a new study shows most people believe their home is worth the same or even more this year.

The survey, by the real estate Web site Zillow.com, said people must be either in denial or not paying attention because, nationwide, 62 percent of people think their home is worth the same or more than last year, when in reality, 77 percent of homes lost value.

Californians are less optimistic; 28 percent think their homes are worth more, but in reality, only 9 percent increased in value.