Which way are home prices going?

According to the latest Experian-Gallup Personal Credit IndexSM survey, nearly half of all consumers (47 percent) say they think a housing bubble and collapse of housing prices is very likely (16 percent) or somewhat likely (31 percent) in their local residential real-estate market within the next three years. This is up from the 37 percent of Americans who felt this way in May 2005 and the 42 percent voicing this opinion in April 2006.

Fears of a potential housing price collapse are greatest in the West (52 percent) and the East (49 percent) but lower in the Midwest (41 percent) and the South (44 percent). Consumers with annual household incomes of $75,000 or more are somewhat less fearful of a collapse in housing prices (42 percent) than are those with incomes of $40,000 a year but less than $75,000 a year (50 percent) or those making less than $40,000 a year (48 percent). Renters think that such a drop in housing prices is more likely (57 percent) than do homeowners (43 percent).

The BIG question I hear all the time is, "What do you think is going to happen with home prices in the Bradenton - Sarasota market?" I think we are struggling to reach the beginning of the end of the market decline. Some signs point to stabilization (pending sales are up, median price is up). Other signs say we have more decline ahead (increasing inventory, decreasing sales).

This is a market struggling to stabilize. Next, we may have 12-18 months of a flat market, followed by more sustainable appreciation.

Here it is:
2007 - More price declines
2008 - Flat
2009 - Growth returns

What do you think?
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Bradenton Real Estate