We Bought a Townhouse

Yes. It is true! My wife and I bought a townhouse in the inner part of Silver Spring, MD.

The reasons for purchasing:

* Low interest rates 4.625%, no points (30YR Fixed)
* Rent is expensive in the area and will continue to rise
* It was the neighborhood we wanted
* It was the housing type we wanted
* Prices are unlikely to fall much more in our new neighborhood.

Our purchase price is about 20% lower from its peak price (nominally). Will prices in our neighborhood fall further? Most probably, I expect most parts of the Washington area to fall another 5 - 10% nominally. Despite this we decided to buy and do not regret our decision.