I think a house this size probably go for around $4500-5000/month in rent. Base on that as being fundamental and buyer having 20% down and the temporary conforming limit, $800k is quite reasonable. @ $800k w/ 20% down and 5.5% w/ 4 points, you’re looking at monthly payment of $3600/month. To make a fair comparison, if we make it 0% down instead, the monthly payment would be $4500/month, which is on par with rent. Some family making $200k can easily afford that payment.
