Affluent growing more concerned about nation’s economy – Apr. 25, 2005:
The survey found that 60 percent of those surveyed now believe a bubble exists in real estate prices, the highest reading since the survey started in January 2003. But while 26 percent believe the bubble will burst in six months to a year, 33 percent say it will burst in one to two years and 28 percent predict the bubble will burst in two years or more. And 27 percent still expect to make a major home improvement over the next three months.
Even with the growing concerns, 76 percent told the survey they plan to hold their luxury spending steady, and another 10 percent intend to increase that spending.
If people really believe there is a bubble, would common sense not dictate that they would restrain spending?