Sentiment in the housing market doesn’t turn on a dime. House prices made their biggest advance in history, between ’97 and ’06. It takes time for the momentum to exhaust itself.
Putting the question to homeowners, pollsters found that the 77% of them believed their houses had either stayed even or gained value in 2007. This result is completely at odds with the research results of the Case/Shiller Index, which puts the average house down about 10% for the year.
In Sacramento, the average house went down nearly 19% in the 12 months to the end of November ’07. In Las Vegas, the average loss was 17%.
The Daily Reckoning Australia