Realtors' survey finds that more than 21% took out zero-down mortgages last year

The San Francisco Chronicle reports:

There could be trouble ahead in California's housing market as buyers are going deeper into debt while sellers are seeing less profit, according to a survey.

More than 21 percent of buyers last year took out mortgages with no down payment, soaring from just 4.5 percent in 2000, according to the California Association of Realtors, the industry's trade group.

The findings suggest that buyers are taking on more debt at a time when the market both statewide and in the Bay Area is slowing. The number of homes sold in the Bay Area dropped 19 percent last year compared with 2005 and the median home price rose just 2.9 percent to $736,820 after years of record gains.

As we've said before: a homeowner without equity is a renter with debt.Big debt.