125, what is really farfetched is to imagine that those smallish houses in non-coastal neighborhoods you are looking at ever sold for 600K+ in the first place. Now the correction is going be really nasty in those areas.
Look at what those houses sold for around 1999/2000 and then you will see closer to real value (based on income). Now that credit is shut off, and people actually have to show proof on income, it’s a whole new ballgame.
Bottom line, if you buy now, you’ll be kicking yourself later.
