Entering year two of my house hunt

It's boggling but true - I'm now entering year two of my search for a house. In February of 2009 I wrote to a local housing counseling agency and asked them sign me up for their next counseling class. It took until September to finish the class. By November I was trying contract number two - which of course didn't work out due to extensive mold issues and cracks in the foundation of the house.

Now here it is March and I'm still really nowhere, without even any prospects in sight. I looked at two houses a week ago. One was very cute but a thousand square feet smaller than the listing said, and was still snapped up two days later, the other, which I loved, turned out to be in the middle of a short sale, even though the listing said not a short sale and vacant and ready for move in. It's depressing.

Today I found this post and am wondering if I should look at more expensive homes and offer the range I'm looking in now. It's true many homes are still way overpriced, the tiny home's price dropped fifty thousand just before we looked at it and then it sold right away, after sitting for months at a 2008 price.

It's all crazy and hard to figure out.