To Buy or Not to Buy---A BIG ???

We are thinking of buying a house.  I know, who wants to buy a house in this economy?  But, for us, now might be the right time.  We can't afford much, and there are lots of places for sale at dirt cheap prices.  In a year or so these same houses may be double or triple the price.  It's a huge decision.  Right now we live in a townhouse.  We have two bedrooms, one bathroom, living room, and kitchen.  We have a large closet that houses the washer and dryer.  We have no yard.  We have a cement slab at the back of the house that is fenced.  It's pretty nice for the price we pay; $595.  We have 3 neighbors in this complex.  That's not bad, I know.  But I long for a yard, space, green plants and room for our Jack Russell, Maisey.  There are a couple of properties we are looking at.  Both are in the next town to the north of us where we attended high school.  One is a two story with mother-in-law unit in the back that would allow me to have a studio/craft room/office.  It's in the downtown area in a nice neighborhood and was built in 1923.  The other one is a two story farm style house that is on the outskirts of town.  It was built in 1899 and is definitely a fixer-upper.  It's also about $100,000 less than the other one.  It's not like we can go out amd buy whatever we want.  It's a matter of what we can afford, what is available, and what the realty companies tell us.  Please pray for us as we wade our way through the waters of home ownership.  We want to do what is GOD's will and what will bring Him glory.