An identical house sold for $430k 6 months ago. Since then, prices have gone down. Currently, the most it can sell for would be ~$400k.
If you buy for $325k, you’re getting a $75k discount (at most). The effects of tightening lending stardards are just starting to kick in. I think this “$75k cushion” would last for 18 months in this downturn. By late 2008, you’ll start losing money. Will you be OK with that ?
It’s very likely that this correction will continue until 2010 (and possibly beyond).
Also, the fact that you have more than one kid tells me that you’ll like need a bigger house within 5 years.
