Homeowners still overvalue homes

Many homeowners are out of touch with the changing housing market, a new survey shows.

Almost half of homeowners think their houses should be priced 10% to 20%higher than their sales agents have recommended, according to a nationwide survey by California -based HomeGain.

No wonder fewer than 20% of agents nationwide are reporting that home buyers are telling them that homes on the market are priced fairly.

Almost 60% of agents say potential buyers are telling them that home asking prices are too high.

"Our survey shows that the market and Realtors are telling homeowners their homes are worth considerably less than homeowners think they are," HomeGain said in the report..

Only 11% of real estate agents surveyed predicted that home prices will rise. Most agents think the stimulus plan will not help home prices. About one in five agents said that home foreclosures now account for 30% of the home sales in their market.

The survey included more than 700 real estate agents across the country, but did not break out information in individual cities.