[quote=deadzone]bg, you keep missing the point. My co-workers represent the MAJORITY of home buyers during that period. Practially everyone in California was puchasing with no down/option ARM liar loans. That is why the prices got so high.[/quote]
I really need to dispel the nonsense of this post. It is a widely inaccurate broad assumption. Time to bring the DATA!
I went back and looked at all the sales in my neighborhood of more than 1000 homes in NCC for the absolute bubble peak which was 2004. There were 30 closed sales in 2004 ranging from $700K to $1.15M. I went back into the tax records and looked at how they were financed at purchase. Several have since resold and none fo them were short sales or REO’s. I was able to get the data on nearly all of them. Here they are from cheapest to highest:
35% down
no data-house was re sold
20% down
47% down
25% down
20% down
20% down
ZERO DOWN
25% down
25% down
10% down
15% down
20% down
25% down
ALL CASH
20% down
55% down
20% down
20% down
no information available
20% down
10% down
20% down
30% down
10% down
33% down
30% down
40% down
20% down
Bear in mind that most people who put 20% down have plenty more in the bank but do so to get the best terms and maximixe tax write offs. I also know some of the most underwater (based upon purchase price vs current value) people personally and they happen to have huge incomes and assets. While not happy about it, they arent sweating it for a minute.
This is not some DZ hyperbole. THIS IS FACTUAL DATA!
