[SumAznGuy]

All I can say is to each their own. 4444 has brought many great points ie low interest rates = cheap money
I agree with 4444 that now is not the time to buy if you plan on renting the place out. Well not all of, but for most of 604/778 I agree. There are still certain areas where the per sq ft is less than $700 and rental prices are pretty good with steady rental demand.

GS8's example is an example of what a lot of people should not be doing. Obviously they are struggling because they over extended themselves and quite possibly have over paid for their unit. That is not an example of why home ownership is bad, but a reminder to everyone to buy within their means.
(edit) Just saw GS8's reply that his friend lost his job. Again, this should always have been a concern. Since your friend lost his job, as a couple they really should have re-evaluated things. Should he be looking for a new job, should they sell the house and rent since they are so tight for money. But they choose to tough it out. Same thing can be said about them if they were renting a $800 per month basement. It's part of being an adult, having bills to pay.

BTW, Gridlock, you can still get 30 year mortgages. 25 year mortgages only apply to those people with less than 20% down payment.