This is opposite of the what the economist believed what will happen with housing. This is a survey of current home owners and look what they found:
Some 78 percent of respondents said they expect home prices to hold steady or increase over the next year, according to the poll of 3,500 homeowners and renters conducted between June and July. That was up from 73 percent in a survey conducted six months earlier. Seventy percent of Americans think it is a good time to buy a house, up from 64 percent six months ago.
There is still a perception by home owners that prices will hold steady. Here's something about their situation.
Finally, while two-thirds of Americans believe that housing is a safe investment, that figure is down 16 percentage points from 2003, when a similar survey question was asked. It is the largest drop among all investment types tracked since then.
"Consumers really have been burned by this housing cycle," says Chen. "Many people who thought they were buying into an asset that would appreciate have found themselves with negative equity. That has damaged consumer perceptions of housing as an investment and will be a constraint on housing market for some time."Read it all