American homeowners’ confidence in their own homes’ value during the fourth quarter fell to its lowest level in seven quarters, with just one in five (20 percent) believing their own homes’ values increased during 2009, according to the Zillow Survey.

However, the survey finds that 28 percent of homes increased in value during 2009 in other parts of the country excluding Bonita Springs, Florida. The disconnect between rising values and lower homeowner expectations led a Home Value Misperception Index of negative two (-2).

A Misperception Index of zero would mean homeowners’ perceptions were in line with their homes’ actual values. A positive index means homes are worth less than owners think; a negative index indicates that homeowners are overly cynical about their own homes’ value.

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