Consumers: Housing Price Collapse Possible

Nearly half of all consumers say they think a collapse of housing prices is very likely (16%) or somewhat likely (31%) in their local residential real estate market within three years, according to the latest Experian-Gallup Personal Credit Index survey.This is up from 37% in May 2005 and 42% in April 2006, Experian reported. Fears of a potential housing price collapse are greater in the West (52%) and the East (49%) than in the South (44%) and the Midwest (41%). "Housing market conditions may not have reached bottom at this point, with 57% of renters thinking there is the potential for a price collapse in their local areas over the next few years and 18% of all Americans expecting prices to decline during the year ahead," said Ty Taylor, president of Experian Consumer Direct. The index can be found online at http://www.personalcreditindex.com.