I hope you mean low 6-figure or mid $100k, cuz if you make $500k, I’m sure you can afford most if not all 2000 sq-ft house in San Diego.
Your friend does have a point though. I don’t know if it’s possible to pull it off but we all can agree that today’s rate is record low. If you think a certain house is 10% from bottom and you can get a 90% offer accepted, why not buy now. That’s a big IF though. Most 2000 sq-ft houses in nice areas are still 20-30% too high even at today’s price. I highly doubt you can get a seller to accept an offer that’s 20-30% below list price.