I talked to one of these friends in depth last night and I think its ignorance. I dont think people do research before buying! Or my friends at least. She had blanket statements such as "buying is the best investment you'll ever make" then I ask her about diversification of investments and she says "you cant think like that." She had nothing to back up her reasoning, but she refused to admit the risks. She said that this housing crisis is temporary (tell that to the people who have lost their homes, I dont think they think this is a temporary problem), and when I said I am worried about my downpayment decreasing in value as opposed to growing as it is in the bank now, she told me to take out an 80/15 loan like she did and just put down 5% so the rest of the money will sit in the bank earning interest.
So I think its as Joan says. They had a good experience, dont realize that they may have lost some money in the process and just want me to enjoy the feelings of pride, accomplishment that they felt. One friend bought at the height of the market but says that the market was shaky at that point.
Once people go through the process, they dont really want hear what they did wrong.
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