[quote=jstoesz]
I take issue with the idea that a 1000 sq ft house, 10 miles from the ocean and in a bad school district is going to sell for over a half a million dollars. How can this ever be considered a “good deal.”[/quote]

$500K ain’t what it used to be. And a lot of people don’t have kids. My neighborhood is full of gay couples that have dogs & cats, they could care less about the school district. The income a couple with children needs to support their kids is freed up for childless couples to chase the limited supply of homes in these areas.

[quote=jstoesz]
As to your “affordable with the low interest rates” comment, yes that is true and not a problem as long as you never want to sell your home.[/quote]

Not if you have an assumable loan (FHA loans are assumable to qualified buyers).