houses in TX
We were just in Austin last week (visiting family, incidentally, we have a relative in Round Rock High School right now, small world huh?) - anyway, I'm pret-t-ty sure we saw some signs advertizing new homes in the low $200s, in or around Austin. In fact, I believe just a few minutes east along the 290 we saw billboard ads for new homes UNDER $200 - and it looks like they are building a new freeway from that area to reach into the heart of Austin. So I think there ARE some opportunities for home purchase around Austin. And our relative bought her first home in Round Rock in summer of 2004 for something in the $100s. It's a 2 bedroom house, nice large living room and kitchen, garage, and a decent sized yard with patio.
Fwiw, at least prices in TX aren't as awful as they are in so many other areas. We live in the Phoenix valley. We bought our home at christmas of 2004 for $225, which was considered a lot for the neighborhood and size of the house - well now, a year later, nothing in the neighborhood sells for less than that, and our house value has gone up to almost $300. Prices are really swelling in Phoenix, as they are in several other places as well. In Texas, there is still undeveloped space, so I think prices may stay relatively a little lower until it fills in. Which, hopefully won't be for a while.