In one of my previous posts, I addressed the new housing developments out here in French Valley, pondering if many had slashed their prices. Here is an article from MSNBC.com today, which indicates that they probably have: http://www.msnbc.msn.com/id/21151323/. It focuses on new developments in Las Vegas, but, if I were you, I wouldn't waste one second jumping into my car and checking out the new developments closest to my house. If those numbers still don't work, head to Vegas, I'm sure you could all use a tax-deductible vacation (that is, if you are really looking for an investment). If I had just $25,000 to spend on an investment, that's what I would do.
I remember that same thing happening in San Diego (and the rest of the country, I'm sure) in the early to mid 90's. We were very skittish about buying a new home for $256,000 in Sabre Springs (by Poway) in 1996, but we purchased it to live in for a while. By 1998, the home had appreciated greatly--to the extent that those who moved out could not afford to buy in the same neighborhood after 6 months. Toward the end of 2003, we rented it out for a little more than a year after we moved. In 2005, we sold that home for $835,000. During that time, it appreciated almost $300,000! You win some, you lose some.
So what are you waiting for?