Buyers Are Worried About A Bursting Bubble

Recent economic reports -- from declining residential construction to rising prices to an increasing supply of unsold homes -- underpin the theory that some housing markets may soon face stagnant sales and prices.

According to the findings of the Experian/Gallup Personal Credit Index poll for April, many of the nation's consumers seem to agree with this scenario with the survey showing that more than 70 percent of consumers consider it either very likely or somewhat likely that residential property prices will collapse nationwide within the next year. At the same time, however, the public is much more upbeat on the outlook for their local markets: only 32 percent of those polled agree that a bubble burst is either very likely or somewhat likely in their area.

Right now in our Bradenton - Sarasota, Florida market the re-sale median price of a single family home is 11 percent below the high of 2005. What's the good news? In the last five years we have enjoyed 145 percent appreciation. So if you have to lower your price 10 percent to sell your home, you are still ahead by 135 percent!