Like Bugs said, prices in the low to mid $200k aren’t beyond the real of possiblity. I would even go as far to say as that’s likely to happen.

Watch the market and wait until you clearly a bottom — RE prices are sticky so you’ll have plenty of time to buy. Then buy even if interest rates are relative high, compared to today. The when rates go back down again (as they invariably fluctuate), refinance at a low rate with a low loan balance.

If prices continue to drop then you could even buy that 5-bedroom house that your family needs. Sounds like you’re a family man. It’s better to buy a house and stick with it rather than buy and sell and incur all the transaction costs.