The Modern Homebuyer Survey from ValueInsured reveals that 58% are expecting a housing bubble and price correction within the next two years, a rise of 12 percentgage points since April.
Those in Washington (71%), New York (68%), Florida (63%), California (59%) and Texas (58%) are the most concerned.
Unsurprisingly given these figures, 83% of owners think that now is a good time to sell while 63% of potential homebuyers are concerned that they might be buying high if they do so now. This rises to 72% among millennial buyers.
More than half of homeowners nationwide believe that homes in their area are overvalued and consider prices unsustainable, rising to 65% among urban homeowners.
Despite the concerns, 79% of respondents say homeownership is an important part of their American Dream.
"Beyond the jitters, I see in our survey an increasingly informed nation of homebuyers, who understand the risk of the market," Joe Melendez, CEO of ValueInsured. "To those concerned about a price correction, or waiting to time the market, I recommend a proactive approach. Have an exit plan, then anytime you find a home you love is a good time to buy."
More market update:
Americans are becoming increasingly concerned about the housing market with many expecting a price correction.