[According to a consumer survey by the real estate advisor site [Think Glink]](http://www.thinkglink.com/article.asp?Title=Housing_Bubble.htm&ID=1599) who asks the question:

Do real estate sellers and buyers believe there is a real estate bubble?

They “recently surveyed more than 4,000 consumers and found that of” the 475 respondents:

  • 66.3% believe there is a real estate bubble.

  • 58.7% of the 66.3% believe that bubble will burst within a year.

  • 41.3% think the bubble will still be alive and well a year from now.

  • 50%+ believe that a real estate bubble is a self-fulfilling prophecy: If you talk about it, it will come.

[[Comments from those who don’t believe there is a real estate bubble.]](http://www.thinkglink.com/article.asp?Title=No_Real_Estate_Bubble.htm&ID=1601)
[[Comments from those who do believe there is a real estate bubble.]](http://www.thinkglink.com/article.asp?Title=Yes_Real_Estate_Bubble.htm&ID=1600)

First of all, this survey seems like a very small sample size and very unscientific. Secondly, they seem to use the word “bubble” interchangeably as a way to describe the current state of the housing market as if it is a fact that we are in a bubble – the jury is still out on that one. In my opinion, the term “bubble” infers imminent doom and therefore by definition, the survey may have been biased in the way the questions were posed.

This story has been carried by a number of web sites and blogs. I’d characterize it as light and a fun read but not something I’d place great weight on. Anything with the word “bubble” gets people’s attention.


One Response to “Self-fulfilling Prophecy: Is Bubble Real Or Media Generated?”

  1. Grunt says:

    I do admit that the media likes to run with words like “bubble”, “foreclosure” and “doom”.

    However I think there is also a segment in the media who are using words like “soft landing” rather liberally to describe the current state of affairs in the market and assuring the public that everything is alright.

    Honestly, no one knows how this is going to play out. But from what I have seen and understand about real estate I would perfer to err on the side of caution.