Consumers Speak on Housing Market

A very interesting article from Reuters on consumer opinion on the housing market. "Few US consumers expect any renewed strength in home prices until the middle of next year..." The article goes on to say that "credit conditions may well tighten after this year's crisis in the subprime mortgage sector for riskier borrowers" which will only exacerbate the housing market's rebound.

Interesting stats from the article: "Three times as many consumers in May expected home prices to increase instead of decrease in the next year -- or 39 percent against 12 percent. Over the next five years, nine times as many expected increases rather than declines -- or 66 percent compared with 7 percent."

The last line of the article, however, is important in evaluating the credibility of this information: "The survey did not say how many consumers were interviewed." So take it with a grain of salt.

Here's a link to the full article: http://www.reuters.com/article/economicNews/idUSN0832540220070608