Well, I think the low-interest rate environment of the last 5 years has created a national, even global, housing bubble. It’s hard to tell exactly what the effects of the bubble burst will be even in areas that never had a huge run-up in prices. So, I’d probably rent for the next few years, no matter where I lived and wait for some signals that things have bottomed out and stabilized. Plus, you’ll get to know the area that way, before buying. There’s no reason to rush right now, IMHO.
Here are some places that come to mind though, no matter how much $$ one had:
-Austin, TX
-Richmond, VA
(I like it there but don’t know much about the schools)
-Raleigh/Durham/Chapel Hill, NC
-Charlotesville, VA (if you can find work – teaching?)
-Atlanta, GA (although it suffers from much of the same urban sprawl issues as So Cal)
-Portland, OR (if you don’t mind fog and rain)
-Montreal, Canada and maybe Toronto
(other than the cold, I think Canada has a lot to offer)
All that being said, we intend to stick around and, maybe, buy a house in Temecula or, possibly, San Diego when prices drop to a reasonable level. In the meantime, there’s nothing wrong with renting. If prices don’t drop, I’ll never buy a house in California again. That wouldn’t really be a big deal either.
