Yeehaw!! This is WHAT must happen to correct the inflated market. When we have people going back to basics and saving up with 20 % downpayment then prices will come back to normal. I cannot wait for the credit bubble to deflate so that I can afford a home with a normal fixed rate loan and at a decent price. To me, San Diego homes should cost no more than 300k in most areas and even ocean front property is not worth 2-5 million either.
If every house sold required a 20% down in cash, homes would be about 60-70% off of their current prices. This would be awesome!, however I don't think we are that smart, patient, or disciplined to behave so responsibly. Personally though, I think we need to completely revamp home loan standards, but that of course would kill the economy, so who's gonna support it?
