CHICAGO, Ill., (PRWEB) December 5, 2005
Is the real estate bubble real or is it all media hype? Over two-thirds (67%) of Americans believe there really is a real estate bubble, according to a recent survey by ThinkGlink.com, a leading real estate advice and information site.
With U.S. residential real estate valued at over $18.6 trillion, the question of whether there is a real estate bubble is a sensitive one. In fact, a large percentage of respondents to the ThinkGlink.com survey (44.7%) indicated that people shouldn't talk about a real estate bubble because the more they talk about it, the more likely there will be panic selling that will lower property values. The respondents are concerned that simply discussing the real estate bubble might create a self-fulfilling prophecy.
Of the survey respondents who believe there is a real estate bubble, just 18.1% believe the bubble will burst within six months. Accordingly, the other 81.9% of those respondents who believe a real estate bubble exists think the bubble won’t burst for at least six months. Another 41.3% indicated that the bubble won’t burst for at least a year and the balance (40.6%) predicted a real estate bubble would burst six to twelve months from now.
“In recent years, home-price appreciation has been running far ahead of rates of inflation, wage increases, and national economic growth,” says Ilyce Glink, real estate expert and ThinkGlink.com editor. “Real estate is a huge part of the typical American family’s net worth, so it’s important to assess whether Americans believe their net worth is here to stay or is at risk of steep decline. For better or worse, when it comes to real estate, perception is often nine-tenths of reality.”
The ThinkGlink.com survey also asked those polled what effect a real estate bubble burst might have on the economy. Of those who believe there is a bubble, the majority of respondents (57.6%) said they think a real estate bubble burst will have a mildly negative effect on the economy. Nearly a quarter (24.6%) of respondents have a more dire view, predicting a massively negative effect on the economy. Interestingly, 16.8% of the respondents who think the real estate bubble will burst believe it will actually be good for the economy.
Respondents voiced varied opinions on the topic of a real estate bubble. “The real estate bubble has got to burst. The housing prices in the suburbs are outrageous,” wrote a survey participant who lives outside of Washington DC. A Chicago-area resident voiced a similar opinion: “I can't wait for it to burst! I'm waiting to buy my first place, and current prices here in Chicago just seem unrealistic.”
Many comments from ThinkGlink.com survey respondents suggest a widespread belief that discussing the possible existence of a real estate bubble may actually lead to a bubble burst. “I think that real estate has become inflated, but a bubble would be the result of self-fulfilling prophecy,” wrote one survey participant. “I don't think there would be a bubble if the media and those who drive the media didn't hype it so much,” opined another survey participant.
The survey was conducted by ThinkGlink.com in November 2005. Exactly 475 individuals responded. For more information about the ThinkGlink.com Real Estate Bubble Burst survey, contact Ilyce Glink at (847) 835-3450 or email [email protected] Survey results, including free-form comments from respondents, are available at http://www.thinkglink.com.
About Ilyce Glink
ILYCE R. GLINK is an award-winning, nationally-syndicated columnist, television reporter, radio talk show host and best-selling book author.
Millions of people coast to coast read her syndicated weekly real estate column, “Real Estate Matters,” and hear her talk show on WSB-AM, in Atlanta. Her hundreds of other radio and television appearances have included the Today show, Oprah, CNN and CNBC. She spent 7 years reporting on consumer finance for Superstation WGN-TV, in Chicago.
She is the author of many books including the bestselling 100 Questions Every First-Time Home Buyer Should Ask, 100 Questions Every Home Seller Should Ask, 50 Simple Things You Can Do To Improve Your Personal Finances, 50 Simple Steps You Can Take To Disaster-Proof Your Finances, 10 Steps To Homeownership, 100 Questions You Should Ask About Your Personal Finances and 50 Simple Steps You Can Take To Sell Your Home Faster and For More Money in Any Market.
ThinkGlink.com offers useful news, tips, advice and information from Ilyce Glink regarding real estate, personal finance and consumer issues. The site includes over 1,500 articles, a database of frequently asked questions, and streaming audio files from Ilyce Glink’s Sunday morning WSB-AM radio show. Over 150,000 unique visitors visit ThinkGlink.com every month for real estate advice, personal finance advice, and information on consumer issues.