Lured back to prime neighborhoods

Ryan and Katie Connors scored their dream home in a commuter town between Seattle and Tacoma.

Ryan Connors and his wife, Katie, just bought the home they really coveted in Federal Way, Wash., just 22 minutes from downtown Seattle.

"We probably would not have been able to afford a house there until now, especially this house," said Ryan, who works as a geologist for a nearby timber company. Katie works as a nurse at Harborview Hospital, which is in Seattle.

Their offer, which was $25,000 below the asking price, was accepted two weeks ago. (That's a significant discount from the property's 2008 appraisal of $411,000.) And even though mortgage rates have crept up a bit since the Connors started shopping several months ago, they will still only pay a bargain 5.3%.

They bought through online broker Redfin, which may have helped save some dollars off their purchase price. The company charges lower fees than conventional brokers, giving sellers a bit more wiggle room to make the deal.

NEXT: A $120,000 price cut