Gallup Poll Shows What Consumers are Thinking.

“What does the average consumer think about the idea of a housing bubble? Could the housing bubble burst and have economic fallout similar to that of the dot-com bubble? Is this something today's home buyers should be worried about as they consider their purchases? The latest Experian/Gallup Personal Credit Index survey provides some key insights.

Not surprisingly, 7 in 10 consumers expect housing prices in their areas to increase over the next year. Significantly, one in three of those who expect rising prices think they will go up by 10% or more during the next 12 months. In fact, nearly 1 in 10 expect housing price increases in the 20%+ range in their areas.”

This is a very good look at what consumers think about the housing bubble and broader economy. Given the general bearishness sentiment, it is hard to believe that house prices can go much higher.