Jonathan Miller’s blog Matrix ("Interpreting the Real Estate Economy") has an interesting post (Consumer Reality Distortion, Or Is It?) outlining a recent WSJ poll on US Homeowners’ perspectives and attitudes.
In particular, Miller noted that:
Only 10% of homeowners polled said they believe that rising real-estate values had affected their spending.
85% of homeowners surveyed said they had experienced real-estate gains in the past three years
70% saw gains of more than 10% in the past three years
50% had extracted funds through home equity loans
60% expect home values to rise at least 5% annualy for the next 3 years.
3% expect home values to fall over the next 3 years.
60% said rising energy costs were causing them to reign in spending.
Its fair to observe (as a commentor did at Matrix) that "only 10% said their spending had increased with the value of real estate, yet 50% had taken out loans against their equity. Is there a contradiction here?"
That’s more than a contradiction; Its the entire underlying premise for why I believe a) Real Estate has been the key driver to the US economy; and 2) why so many people – professionals included — do not have a firm grasp on the underlying economy.
Any subsequent "retracement" will simply catch a majority quite unaware.
Its is all too true: Most people know not their own minds, including their biases and beliefs, their predelictions and prejudices . . .
Poll Finds Homeowners Expect Gains to Continue
TARA SIEGEL BERNARD
DOW JONES NEWSWIRES, September 29, 2005; Page D2
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.