Similar houses like that in my new neighborhood here in Austin, Texas, came with price tags below $200 thousand when I moved in 2006. But in La-la land of California, the price you are paying seems reasonable enough: 40% off from the peak of 2005. Congratulations for finding the house you like. I say go for it. I only pray for you that you have a very secure job to pay for it for a long time.
