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Monday, November 13, 2006

Gallup: Homeowners Still Optimistic on Prices

by Calculated Risk on 11/13/2006 03:38:00 PM

The Gallup Poll conducted a survey on homeowners' perceptions of their home value.

Median home prices will probably fall over the next year, however 84% of homeowners still expect their home values to increase or stay the same.

Edit: I removed a paragraph since I misread the Gallup poll.

This survey shows that the psychology might be changing (more homeowners think their home values will "stay the same"), but that most homeowners are probably still too optimistic about future prices. When (and if) these expectations change, the housing market will probably take another down turn - and consumer spending might also decline.