Americans fear market 'bubble'.Is the real estate bubble This article is about the general phenomenon of housing bubbles. For housing bubbles in various countries, see below. A real estate bubble or property bubble (or housing bubble real or is it all media hype hype 1 Slang n. 1. Excessive publicity and the ensuing commotion: the hype surrounding the murder trial. 2. ? Over two-thirds (67%) of Americans believe there really is a real estate bubble, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. 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 In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. 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 Panic Selling High volume selling brought about by sharp price declines. Notes: The main problem with panic selling is that investors are not evaluating fundamentals. Instead, they are selling on pure emotion. that will lower property values. The respondents are concerned that simply discussing the real estate bubble might create a self-fulfilling prophecy self-fulfilling prophecy, a concept developed by Robert K. Merton to explain how a belief or expectation, whether correct or not, affects the outcome of a situation or the way a person (or group) will behave. . 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. Ilyce Glink, real estate expert and ThinkGlink.com editor, commented, "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." |
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