Pessimism among homeowners is on the rise, according to Zillow’s second quarter Homeowner Confidence Survey. One third said home values in their local markets have yet to reach bottom and 28 percent believed prices would drop in the next six months, up from 20 percent in the first quarter. Dr. Stan Humphries, Zillow’s chief economist, said the results weren’t surprising considering declining market conditions since the expiration of the tax credit. The barrage of bad news has homeowners becoming more responsive to current market conditions than they were in the past, Humphries said. Still, 38 percent of homeowners believed prices in their local market had reached their bottom and five percent said they are very likely to put their home on the market in the next six months if there are signs of a real-estate turnaround. More here and here.