Harder to get 100% financing now?

[ibjames]

Perry, you mention 2002 prices, that it could sink below that even. What was the average price for condo, and detached during that time?

[Cow_tipping]

Of course it can sink below 2002 prices. The jobs that were then available in CA have gone Poof … heck I expect to see 97 prices. And those jobs have gone Poof to India and china as well.
Cool.
Cow_tipping.

[ibjames]

So what were those prices for those years? 97 and 02?

[no_such_reality]

August 2002: SFR – $360K Condos – $244K

August 1997: SFR – $183K Condos – $137K

While 1997 was laying pretty much on the bottom, you can see by 2002, we were well out of it, potentially excessively so giving 100% appreciation in 5 years which is a compounded return of 15%/year.

SD UT has median info online.

I used to think 2002 numbers were pretty secure, but I’m having more and more doubts. I see more and more fraud coming to light which in indicates the actual home buyer peak may have been 2003/2004 and everything since was fraud propping up fraud. When single buyers are buying five or six homes through multiple mortgage brokers before the loans can register, those aren’t real sales and the competition they caused wasn’t real either.

The hang over from this one will be bad.

[(former)FormerSanDiegan]

1997 prices ?

Maybe on a relative basis. But not in absolute terms.

Incomes in San Diego (median household) have risen by about 50% from 1995 to 2005 from 37K to 55.6K. Inflation (even in low inflation environments) does amazing things to the value of a dollar.

I think 2002/2003 prices are a safer bet.

[hipmatt]

I feel that at least a 10% down should be required for all home buyers. And at least 20% for second homes or investment properties. Home prices would be much cheaper, and it would be easier to save up for 10% of 200k vs. 500k. If you can’t manage to save up 10%, why be trusted with a loan? Sorry, I know this will offend some people, but its true. If you are financially responsible, you can save up the difference. Besides, the mortgage on most loans that are 100% financing are at least 2x what rent would cost, you should be able to save up quite a bit renting, if you think you can buy. Anyways, how can you consider it owning a home if you owe 100% on it anyways, seems like renting to me.

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