Santa Barbara Real Estate
Americans increasingly believe a housing bubble may be looming. A substantial number of Americans and Californians believe that housing markets are overvalued and due for a correction, although a recent study says that the chances of that happening are slim.
A Modern Homebuyer Survey found that 57 percent of U.S. homeowners believe that home prices in their area are too high and that appreciation rates are not sustainable, up 7 percent from the first quarter. Eight in 10 millennials think that homes are overvalued, a quarter-over-quarter gain of 12 percent.
Fifty-eight percent of respondents think that there will be a housing bubble and a price correction within the next two years. California is one of the five states where homeowners are most worried about a housing bubble, with 59 percent of those surveyed citing it as a chief concern.
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