Recently, I was checking out real estate prices in the Cleveland area, and the decline in prices is staggering, even in very desirable areas.
When I was living in South Euclid, a suburb to the east of Cleveland, you couldn't find anything in Beachwood, the suburb immediately to the south, for anything less than $200,000. Now, houses in Beachwood start in the low $100,000s. Many other once somewhat pricey eastern suburbs, like Mayfield Village, Highland Heights, and Chagrin Falls, are now filled for houses for sale in the mid-$100K range..What's especially scary is that it's now possible to break into Pepper Pike and Moreland Hills, once-unapproachable wealthy suburbs, for around $200,000.
Let's say you found yourself moving to a region with extremely deflated home prices. If you buy a house, would you buy something similar to where you lived before for a song, or buy someplace spectacular that you can now actually afford?