There is a reason we are leasing our farm instead of buying. It's my humble opinion that the housing market in many parts of the country may still drop up to another 20% despite all the media assurances (quoting people in the Real Estate field as their experts) that the worst is behind us. Think about it, if people don't have jobs they can't buy houses. It's pretty simple. And thus there is downward pressure on housing prices that were much overinflated at their 2006 highs. So we don't plan to buy for some time, but that's just our perspective. If you find what seems to be a good deal and it's a place you plan to live for some time it might be worth it in your situation.