A friend of mine was looking to buy around 2005, and held off because he realized that many of the units being sold in the development were not “owner occupied” (though they were one-family units); they were being bought and rented out by speculators, and this was driving the prices. Within two years the prices had fallen 30% (and the prices were high).
Yep, owner occupied was my standard as well. I wound up buying a modest 2000 sf house built in 1940 in a safe, well established neighborhood. I am kneed underwater, but not nearly as bad as if I bought one of the McMansions or ghost town condos the realtor was pedaling. Plus, I am happy to live and grow my family here until it turns around.