The neighbor across the street and three houses down dropped their asking price to $425K. They had been asking $499K. And back in November they were asking $625K!
My wife and I looked at some houses last weekend just for entertainment. We looked at a house that was 3774 sq.ft. and the realtor was asking $370K! It had ALL the upgrades that my wife likes. It was way better than our current house. Of course it was a foreclosure, no furniture, just an empty house.
We drove down another street a couple blocks away and that street had five out of ten houses for sale with brown lawns on three of them and red pieces of paper (Notices of Default, NODs, eviction notices, etc.) in the windows. All of these houses have three-car garages.
Anyway, we're going to rent for another year and try to save some money and pay off bills in the meantime. I kind of doubt my debt to income ratio will be under 35% next year since I'm on year two of a five year debt repayment plan with all my creditors. Well at least I can sleep at night.