Johnny- yes we have made a decision. We're going to wait.

Everything is just too expensive right now. We could get a 2500 sf home on 6 acres in my town (Pomfret, CT) for about 500,000....or a condo in CA. We've decided to give it another 1 or 2 years, maybe then... I don't know. I'm very dissapointed, but at this juncture it just doesn't seem sensible.
As far as CT culture, West Hartford and Meriden are fairly suburban, relative to Pomfret which has beautiful rolling farmland, forests, and that "quaint" feel. One thing I don't like about this town is that many people seem so hoity toity! Probably the same is W. Hartford. Anyway, Johnny- if you aren't leaving CT until 2008, perhaps our families could share a residence, I'm certain I'd be able to afford that! Hopefully the market will cool slightly over the next 1-2 years. I'll keep my fingers crossed.
Thanks to everyone for all the illuminating advice. Best wishes and good luck!