Nor-LA-SD-guy, a deal on a house is not determined by price per square footage, but by getting what you want with as little as possible.
After all, the house you bought is now off the market so the comps don’t work exactly.
When I started house hunting in August, my goal was to buy at the end of the year, and get 15% lower price than the market price at the time (I remember SDR questioned me at that time what makes me thinking that it would drop 15%). At the end, I think the price in Temecula did indeed drop about 15% on average and the house I bought (a short sale) was 22% cheaper than its listing price in Aug/Sep timeframe. Plus, the interest rate dropped which probably saved me over 10% as well. So I am happy with my purchase, no matter whether the overall market will drop or not. Like TG, I will just pick up a rental property if it indeed keeps on dropping to ridiculous levels (e.g less than x100 house/rent ratio)
