If you can remain in the house until the note is paid, then buying makes sense. Of course you have to be willing to part with a large portion of your savings. That's my current dilemma, I don't want to land-lock myself to living in Arizona. Since this housing market here ranks amongst the worst in the country there is still time to wait. Prices are not at the bottom and no need to jump while the prices are still going down. Why blow savings and buy a depreciating asset? We were all taught taught home ownership equals financial stability. I don't feel that is the case these days.