Trends—Public Perceptions of the U.S. Residential Housing Market before, during, and after the Housing Bubble (1990-2009)

The residential real estate market in the United States experienced unprecedented growth beginning in the late 1990s, followed by a dramatic downturn starting around the middle of 2006. By tracking opinions and perceptions of the U.S. housing market before, during, and after the real estate boom, this article traces a dramatic shift in public perceptions about general impressions of the housing market, past perceptions and future expectations of housing prices, perceptions of the likelihood of a "housing bubble," and opinions about whether it is a good or bad time to buy a house. Overall, the downturn in public perceptions of the housing market changed along with or lagged somewhat behind the downturn in housing prices. Additionally, most were more optimistic about the local housing market than the national housing market, and were less pessimistic about the longer term than the next year. Finally, even given the worsening conditions in the housing market, by the end of 2008, about seven in ten Americans felt it was a good time to buy a house.