One more thing, this house was purchased for $715K in the summer of 2004. If it is sold at $600K, that is a 16% decrease. Assuming inflation is 8% for the last 3 years. The real reduction is closer to 25%. Buying a house like this is unthinkable for me just a year ago. But now I think I might be able to buy it in a year or two if prices keep going down at this rate.

Should I buy something like this next year at around $550K if our combined income is $140K, and have $75K in cash? Also my brother will let me borrow $30K if needed.