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Originally Posted by Markel
A few years back if you sold your house you only had a number of months (something like 18) to purchase another house or you would face capital gains on the difference between the purchase and selling price of your house (minus costs for improvements). I'm not sure if that's still the case, but if it is it would make buying another house a more attractive option.
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This is only true if you made a gain on a primary or secondary house AND you did not own the house for more than 2 of the last 5 years. If you owned the house for 2 of the last 5 years and you didn't sell a primary or secondary house in the last 2 years for a gain then you don't have to pay taxes on the gain from the sale. I am pretty sure Cheapie meets these qualifications for his current house.