WHAT $500,000 BUYS YOU NOW

Last year's "slow leak" in the housing market has now turned into a deflating bubble. Average home sale prices nationally are expected to drop 3% to 4% this year, and Kiplinger Forecasting says prices could fall another 1% or so next year before there is any turnaround.

Only a few years ago, it looked like $1 million might become the new benchmark for acquiring a large, luxurious home, especially in large metropolitan areas along both coasts. With prices falling, Kiplinger.com searched real estate listings across the country for homes for sale in the half-million-dollar range.

Take a look at these properties, and decide for yourself if $500,000 has become the new benchmark price for the American Dream.

By Amy Pollak