Consider putting some of those savings into physical Gold on the next Gold price drop, as Gold will continue to rise relative to real estate prices and provides insurance against a currency event that won't stop deflation but will devalue the U.S. Dollar significantly. Here's a chart stolen from an article by Adrian Ash at bullionvault.com (and defiled with my scribbles) that shows how much further housing prices will drop when priced in Gold before we reach "the" bottom in real estate in the U.S.:
There will be deals of a lifetime in real estate (even better than this one, which by the way shows that we have moved beyond the 1st inning in this real estate collapse) over the next decade for those who are patient and who can maintain some capital. In the mean time, the ongoing real estate bubble popping is an 800,000 pound deflationary gorilla that cannot be ignored in the inflation vs. deflation debate.
