65 percent of U.S. homes declined in value last year, but according to Zillow.com’s first quarter Homeowner Confidence Survey, only 50 percent of homeowners believe their own home’s value has dropped in the last 12 months. And with 7 percent of homeowners saying they’d be very likely to put their home on the market in the next year if there are signs that the housing market is improving, that overconfidence could represent as many as 5.3 million homes put up for sale in a market already threatened by shadow inventory. Stan Humphries, Zillow’s chief economist, said we are in for a saw-toothed bottom, where inventory decreases, causing values to stabilize and some of the sidelined sellers to put their homes on the market, causing inventory to grow and values to decline again. More here.