Here is an interesting story; a survey shows that most homeowners have difficulty believing that house prices have fallen. Funny that they had no problem believing that house prices had increased during the bubble.

NEW YORK ( -- Despite numerous reports showing home values in historic decline, more than three out of four homeowners believe their own home has not lost value in the past year, according to an online survey.

The survey was conducted by Harris Interactive for, a Web site that gives estimated home values. The survey of 1,619 homeowners found 36% believe their home has increased in value, and another 41% believe their value has stayed the same. Only 23% believe their home has lost value.

"This survey reveals that despite the data to the contrary, people either aren't paying attention to their housing market or are in denial about their own home's value," said Stan Humphries, vice president of data & analytics. Zillow's own estimates are that home values declined 5% on average last year, with many markets posting much steeper declines.