US real estate recession short term?

Consumers in the US are optimistic that real estate will recover sooner rather than later, according to a new survey.

Nearly one in two polled by Housing Predictor, an independent forecaster, in 50 US states said they believed prices will recover within the next two years. Some 47% said the worst real estate recession in US history will be relatively shortlived

Only 28% said they thought it would take five years or longer for conditions to improve in the housing market.

Some 25% polled even said they believe things would improve in a year or less. This is despite warnings that the US is either in a recession or close to one and rising fuel prices triggering the highest food inflation since 1992.

Just two days ago former Federal Reserve Chairman Alan Greenspan warned that the US is on the brink of recession and that it will take years for the economy to recover.

And, Housing Predictor, which conducted the poll in the first three weeks of June, believes it could show just how out of touch ordinary Americans are with what is happening in the economy.

'This survey indicates that many Americans may be out of touch with just how deeply the real estate crisis affects the overall economy,' said a spokesman.

'However, since consumer sentiment is the most significant driving force behind residential real estate markets, the optimistic outlook may well be the strongest aspect of the markets return in strength in the future,' he added.

The survey also identifies a massive change in the way American consumers regard banks and other lending institutions, displaying disapproval for the way mortgage lenders conducted themselves, liberally making home loans to consumers with little regard to others who their actions may affect.

Some 56 percent of those surveyed said they had 'lost confidence' in mortgage lenders, while 44% said they had not lost confidence in lenders.

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