Hello, I have been in the Real Estate industry since 1996 and I work in one of the hottest markets in the country, Phoenix, AZ. I can tell you that the market that you are buying in will tell all. If you are looking to buy a home to live in, it is not an investment in the same way that a rental or fix & flip is going to be. We all must have a place to live and owning still makes more sense in most markets right now because of equity and appreciation. Even if the market tanks, it is temporary and the property is still a hedge against inflation. You cannot go wrong as long as you are sensible, and treat the property as a HOME and not a cash out ATM.
Now, if you were looking to buy a rental property or a fix & flip, that would be another, completely different, conversation.
Freeman has given you the best advice so far. I’m a successful residential renovator (fix n flips) in Denver (second biggest sellers’ market) and would love to share advice, but we really need to know your long or short term strategy per “buy and hold” (rental), a personal holding you’ll live in, or quick flip. If I were to buy a rental, I’d look at cities in Ohio, Alabama, Arkansas, and Texas. Here in Colorado, the current secret hot spots are Pueblo, Conifer, and Bailey for future growth. Per Phoenix, Freeman might agree that SW Phoenix is going to explode with growth. Also, one good strategy might be to search Craigslist for Wholesalers. They hold contracts on properties that are fixers and/or have very motivated sellers (people in financial, personal, or job related stress). The only drawback is that you must move swiftly on such deals and have your financing in place, and with a lender who is willing to let you take on a fixer. However, many fixers are only cosmetic. No matter what, they will be below market deals! I can help you analyze and acquire any property in any market by showing you the open source online tools that I use, but the key is knowing your exit strategy.