While you may have dreams of a lower market, which may come eventually, you aren’t in touch with current reality of the actual market.
Comps on 3/2 1200 sq. ft houses in the neighborhood easily put a non-trashed house in this area at $450K. With a huge lot, on a canyon, adding $100K to that isn’t out of the question. Here’s a similar-sized house on a tiny, near-canyon lot that sold for $500K in Jan.: