In reply to:
If you can locate anything worth buying below $300K in the Bay Area, I want to know about it...
Yes, I would ask the same favor for Washington DC metro area as well...
Also, waiting is a valid option for now. However, I don't think the prices will ever go down in DC area. They may flatten out, that means decrease in real terms though. As such, waiting will do nothing other than saving some more money, which, on the other hand is not substantial when talking about a 300K loan. Dilemas, dilemas...