Welcome to the luxury housing market for move-up buyers--or at least what's left of it. Although home prices nationally have recovered some this year, they're still down about 30% from their 2006 peak. Prices in a few major metropolitan housing markets have fallen off a cliff. For example, in the Miami metro area, they're down more than 40% from their peaks, Las Vegas and Phoenix off 60%. Some economists think prices may decline another 5% over the next 12 months, although we at Kiplinger think the drops have leveled off. Home prices generally are where they were in 2003.
Here are 10 properties for sale around the country that showcase what you can buy in the $500,000 price range. As you'll see, location plays a big role in size and amenities. The bad news is that most move-up buyers have lost substantial equity in their first or second homes, so they have much less to roll over. The good news is that $500,000 goes a mighty long way in the decimated housing market, especially with interest rates at historic lows. This could provide attractive buys for empty nesters and baby boomers who have accumulated enough equity in their existing homes to make a transition, whether it be moving to a new locale, or downsizing. The slide show begins to your right.

By Amy Pollak

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What $500,000 Buys You Now2010 Edition

Asking Price: $450,000
Square Footage: 3,865
Bedrooms: 5
Bathrooms: 4
Acreage: 0.77
Located in East Cleveland, 5 miles from downtown, this home is the least expensive on our list. One block from Lake Erie, it has a view of the water. Built in 1940, its original moldings, leaded windows, and hardwood floors have been preserved or restored. Comes with a detached 2 car garage and 2 fireplaces.

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Bratenahl, Ohio

Asking Price: $459,000
Square Footage: 4,077
Bedrooms: 4
Bathrooms: 3.5
Acreage: 2.33
Here's plenty of house on a big lot within the city limits of the second largest city in Mount Rushmore State. It features a hot tub, fireplace, and media room. The price has been reduced by $25,000.

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Rapid City, S. Dak.

Asking Price: $480,000
Square Footage: 700
Bedrooms: 1
Bathrooms: 1
This condo is in the popular Tudor City complex of midtown Manhattan, on the East Side near the United Nations building. It comes with a 24 hour doorman, gym, rooftop garden, and East River views. Grand Central Station is a five-minute walk away. It's a little pricey at $686 per square foot. But it's in the heart of Big Apple.

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New York, N.Y.

Asking Price: $489,000
Square Footage: 3,959
Bedrooms: 4
Bathrooms: 2.5
This Bahia Bay waterfront home is on the Intracoastal Waterway 20 miles from Corpus Christi. It features 3 levels of panoramic views, a big porch, sunken hot tub and power boat lift. The price has been reduced by $50,000 in this tough housing market.

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Rockport, Tex.

Asking Price: $494,000
Square Footage: 4,352
Bedrooms: 6
Bathrooms: 4
Acreage: 12.83
This cedar-sided home is the largest on our list, with the most land. It's only 15 miles from Yellowstone National Park, and features a two story stone fireplace, covered porch, a loft, and nice views of a river valley and surrounding mountains. All for about $114 per square foot, which is quite low. The asking price has been reduced by $81,000.

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Cody, Wyo.

Asking Price: $519,000
Square Footage: 3,460
Bedrooms: 5
Bathrooms: 4.5
Acreage: 0.40
Located on the border of the Peach State and South Carolina, about 10 miles from Augusta, the house has hardwood floors throughout, a fireplace, granite countertops and coffered ceilings. Built in 2001, it's a luxury home with all modern conveniences on the fairway of the 5th hole of the Jones Creek Golf Course.

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Evans, Ga.

Asking Price: $519,900
Square Footage: 2,000
Bedrooms: 3
Bathrooms: 2.5
Acreage: 0.12
Ten miles from Washington D.C., a 5 minute drive to the Metro rail system and a short walk from Sligo Creek park, this home features a stainless steel gourmet kitchen, hardwood floors, several fireplaces, crown moldings, and a recent bedroom addition. The asking price has been reduced by $16,000.

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Silver Spring, Md.

Asking Price: $525,000
Square Footage: 3,795
Bedrooms: 4
Bathrooms: 3
Acreage: 0.23
Built in 1995, this large Floridian home is on a golf course. North Miami Beach and Hollywood are only 5 miles away. There are many custom builder updates, including an enclosed pool, large patio, and granite countertops.

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Pembroke Pines, Fla.

Asking Price: $529,500
Square Footage: 2,554
Bedrooms: 3
Bathrooms: 3
Acreage: Standard City Lot
This original but updated Victorian is vintage New Awlins. Located one block from Magazine Street in the Garden District, it's bigger than it looks from the outside -- 2,500 square feet of living space with an enclosed courtyard complete with a hot tub. The house has been fully restored with period touches and artfully remodeled with crown moldings and exposed beams, all priced at $207 per square foot.

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New Orleans, La.

Asking Price: $549,000
Square Footage: 630
Bedrooms: 1
Bathrooms: 1
Acreage: Standard City Lot
Originally listed in January for more than $600,000, the city-by-the-bay cottage is minutes from the Castro District, with its many shops and restaurants. At $841 per square foot, it is pricey, but this is San Francisco, one of the costliest real estate markets in the country. The home was built soon after the 1906 earthquake, but has been updated.

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San Francisco, Calif.

SLIDE SHOW: Great Cities for Young Adults
GUIDE: Best Cities for Your Future
SLIDE SHOW: 10 Best Cities for the Next Decade
SLIDE SHOW: 10 Great Cities for Young Adults
SLIDE SHOW:5 Great Cities for Retirees
SLIDE SHOW: U.S. Cities With Highest Cost of Living
SLIDE SHOW: What $300,000 Will Buy You Now

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