Carrying on from the previous post. Here's MLS #5870274, a snout house near my old 'hood. 1500 square feet, built in 2006.
The house looks OK, a small, boring but decent starter. They're asking $66k. Assuming 10% down, that's $337.00/mo for a 30-year fixed. Figuring in 3% property tax and $90/mo insurance, PITI runs $592/mo.
You can rent a similar snout house, in the same general area, for $1250/mo.
There are many examples like this. Which is why I think that in much of the country, outside of the most egregious bubblezones, real estate is very close to the bottom.