OwnersWorry About Bubble
A growing number of affluent Americans are worried that there is a real estate bubble brewing, according to a study conducted for the McDonald Financial Group, a subsidiary of KeyCorp here.
When asked if they believed real estate was overvalued, approximately half the respondents said there is a real estate bubble, up from 43% in the October 2003 survey.
This is an 18 percentage point increase since July 2003 and the highest level recorded by the McDonald Financial Group Affluent Consumer Confidence Index since January 2003, when also approximately 50% of respondents said real estate was overvalued.
What is believed to be fueling this concern about real estate values, said McDonald Financial, is the widespread belief among respondents that interest rates will increase over the next three months. The survey found 35% believe that rates will increase in the next quarter.
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