When I was a youngster, I remember new home signs all over Houston that read "From the 40's". Now, that was more than a few years ago and you can't buy a new home in the forty thousand dollar range any longer, but there are still great deals out there.
Remember, when homes were that low, the interest rate was around 15% and folks were still buying like crazy. Now, interest rates are staying low (around 5.75%). Although credit is a little harder to get than before, but if you have a fairly good credit rating 620 or above, you can buy and pay about the same or less than you would renting.
I believe folks are more cautious about buying than ever before. I suppose it has a lot to do with our somewhat sketchy economy and the lack of stability in the job market. I usually recommend to my clients to buy less than they can afford so that they can not only build wealth, but be prepared for emergencies. Too often I see a person that has been approved for $200,000 but wants to spend $220,000.
The bottom line is spend wisely, but remember buying a home is still a great way to add stability to your life and your financial portfolio.
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