Kris from Vegas linked to this graphic. It shows the very worst time to have purchased a house in the USA was July 2006.
The situation in Vegas is worse than the national average.
Last week I toured the new Vegas home of a couple who defaulted on their old mortgage. They could easily afford to pay the (high) mortgage on their current house, but they got a far better home for much less due to the current market.
This was a strategic default.
People who default on mortgages they can afford to pay are savvy about credit and tend to have better credit histories than other defaulters, new research shows …
The University of Chicago Booth School of Business estimates that strategic defaults accounted for 35% of defaults in September vs. 26% in March 2009. In January, the Nevada Association of Realtors released a study showing that 23% of Nevadans who lost homes admitted to strategically defaulting. …
They don’t seem to be too worried about any drop in credit rating. So many people are making strategic defaults that it’s become normal business practice.