Either way thing will go up, just look at the 80s rebound.

The economy has been slowly improving and the equity markets have really rebounded.

They will always add the higher income earner and put most weight on them for a loan.Historically on loans the bigger earner always carries the mortgage payment out of the two.The credit comes in from someone can make a 100,000 but spend 120,000 and someone can make 50,000 and save 30,000 so it's income earned and how they use it (credit score) that makes a difference.To be able to sell the loan off everything has to fit in a nice little box.If it doesn't and is approved someone's job is going bye,bye real soon.Most local to regional banks in my area will not touch any what they term as EXOTIC financing.Meaning anything outside the norm.They want to get existing junk off the books and make loans that on paper have a very low chance of default.From what I was reading certain parts of PA is one of the first markets rebounding in the country for values.I would look at clothing,cable,vacations,increasing your real estate closings,etc. to increase cash flow and reduce debt.If you work at a brokerage work on getting your brokers license so that you keep it all.That will increase your income right away.

Any major cities nearby that seem to have the chance of a rebound or have good things on the horizon?

I thought I did a good job of rebounding after my explanation, but overall, I was disicouraged by the seller's reaction. 

I expect the property prices will rebound, since Santa Rosa has low unemployment and job growth is projected to increase a lot in the coming years.

If the next generation prefers to pay high rents for conveniences, then we may never see the Real Estate Market Rebound as anticipated, but the Long-term hold market may perform like never before (Cheaper than we are used to homes providing great Rent.)

I know it has been one of the slowest markets to rebound after the real estate crash.  

It seems like the condo prices in my building have not been able to rebound much since the housing crash.  

The city will rebound at some point and I feel like there could be huge returns on these properties.