Los Angeles is considered the most overpriced city in the nation, and it’s not hard to see why. I outline our step-by-step plan that helped us put together our down payment and hopefully will be an encouragement for others in a similar situation.

Since this is the year to buy a home for us, I’ve been keeping a close eye on our real estate market. It’s crazy, but the Southern California market has rebounded almost back to where it was during the peak of the housing boom. Not quite as crazy, but almost. So finding a home below $400,000 will be a challenge.

Surprisingly, Austin, Texas ranks number one for the most overpriced housing area in the nation. Los Angeles metros rank number two according to Trulia.com.

Should I buy? Should I continue renting? If I lived in a city where there was a clear choice, this wouldn’t be such a dilemma. However, living in a suburb of Los Angeles makes it a distressing, hair-pulling decision.

However, I’ve known for a few years now that Los Angeles is just not a very affordable city for median income earners like myself. I’ve stayed because I have roots here and a good job, and it’s also what I know.