Money and Main Street
9 of 9
BACKNEXT
Rochester, NY
Rochester, NY
See More Views:
1 2
Purchase price: $150,000
Price change from peak: -0.9%


Tim Eller got a triple benefit last month when he closed on his first home in Rochester, N.Y. He relocated there from the much more expensive Washington D.C area, prices have held very stable in the upstate New York city and the interest rate on his loan is very affordable.

The median house price in Rochester was just $106,000 during the three months ended September, 2008, according to Zillow.com. That's off less than 1% from the peak of the market, which was recorded three months earlier.

Eller, who's getting married later this year, paid $150,000 for a three-bed, two-and-a-half bath, 1,400-square-foot colonial in a nice suburb. The mechanical engineer financed the purchase with a 6.25% FHA loan that required only 3% down. He bought for the long haul; he's not expecting outsized appreciation on his investment.

"Rochester did not see the artificial run-up in housing prices," he said. "An investment in housing here seems to equate to a 3% to 5% annual return."

The low cost of housing enables people to purchase homes when they're still young and not yet earning the big bucks they will be later in their careers. They don't get overburdened with mortgage payments to pay for homeownership. Eller's mortgage comes to less than $900 a month. That leaves a lot of money in the budget to spend on fun things. - L.C.

More galleries
Last updated June 15 2009: 10:24 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
The weapons of The Walking Dead Zombies are fiction, but the weapons on The Walking Dead are real. More
America's oldest workers: Why we refuse to retire! For these seniors, the best retirement is not to retire. From a 102-year-old Wal-Mart worker to an activist park ranger, these workers have stayed on the job well into their golden years. More
Why I'm protesting in Hong Kong Tens of thousands of protesters have flooded the streets of Hong Kong to demand open elections free from Beijing's influence. Eight protesters explain why they're taking a stand. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.