We bought our house in a core city neighborhood 6 years ago for $65,000 (was listed for 59,900, but needed work, so we up'ed the price to include a brand new roof, water heater and gas furnace before purchase). It was recently appraised for almost double the price ($105,000-110,000).
We are now looking for a farmhouse w/a couple acres in the sticks and want to pay less than $150,000. We have looked at a couple of real dumps at that price point...we would be paying for the land at that price, as the houses were worthless (major structural and infrastructural issues). We are starting to look at less land, more house and have found a few candidates.
Houses in general range in price from $35,000 (real dump in a bad neighborhood), to $1M in The Preserve, a mansion/McMansion area with 6,000 sq. foot, 5 car garage homes
. Average home price in my neighborhood is probably around $80,000. Average home price city and township wide is around $250,000 and that is a really nice house in a good city or township/suburban neighborhood.
One problem our community has is that while there isn't a shortage of housing, there is a shortage of affordable housing. Many people who are able to buy homes are buying the less expensive homes when they could afford something better, thus limiting the pool of homes for people who can afford less and/or jacking up the prices of the affordable homes to meet the means of the people buying.