Hudson isn't cheap, but it's also a mark of how stable the values there are. You'll find houses in that range, but you may either want to dig deeper, or look outside the city if you're looking for something a bit nicer. If you do, you should find that there's really no bad places to pick in Hudson, and the school district is a good one, likely to stay so with housing values what they are (and rising even still!).

Outside of Hudson, the market's dipped much like most places, but this doesn't mean it's bad, there's plenty of good locales:

Spring Valley: nice little town, very relaxed, but a bit of a drive. might be too small for you

New Richmond: cute town, much like Spring Valley. lots of land around. good prices on housing, but not near the river.

Prescott: looks can be deceiving. a loot like Richmond and spring valley, but corrupt corrupt corrupt. cheap butI'd look elsewhere.

River Falls: lots of growth! soon the prices will be much like in Hudson, but there's a lot of development going in to match, definitely a place to watch.

Roberts: yuck. old landfills in the area, and runoff is a problem.

Hammond: see Roberts for same details here.