They say history has a tendency to repeat itself. I believe that to be true in the housing market as well. For the past several years, I have watched homes sell in my market (Atlanta Metro Area) for prices that I have always considered way under valued. Atlanta has been on the hot list of cities with the most foreclosures and the most loss of value percentage-wise. However, the interesting thing is, Atlanta always was a bargain compared to other cities of similar size. With few exceptions for certain urban neighborhoods, home prices have always remained affordable and when other areas like NY, California and Florida were experiencing tripple digit increases in price each year in an unsustainable house of cards, metro Atlanta homes were only appreciating at a very sustainable rate of 4-5% per yer when the market was healthy. Even in the peak of the market, a middle class family could purchase a decent 4 bedroom home (2400 SF or so) in a respectable suburban neighborhood with good schools, good access to highways and reasonable proximity to the city (15 miles away or so) for under 200K. I was always shocked when I watch the TV shows on HGTV and other networks showing a 2 bedroom 1 bath bungalow in California going for 800K and I asked myself, how can normal people afford to live there? Somehow, I always took comfort in knowing that in my city, the cost of living housing-wise was very reasonable and there was a good quality of life for a middle class family.