Good points daney143, I totally agree about Del Cerro. I just ran the numbers and with a 30 yr. fixed at 6%, your payment is just under $2800/mo ($450K price, $90K down); with the tax deduction that’s very doable for a household making $100K/yr and maybe even less if they’re thrifty. It is still a little more pricey than renting, especially considering your giving up the income you can generate from that $90K down payment. What’s the median household income here in SD? Also, how many first time buyers will have a $90K down payment?

I still think it is a good idea to wait until all of the weak hands are flushed from this market over the next few years. A lot of people really stretched to get themselves into these houses.