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When my son bought a 50 year old, unrenovated, 1800 sq ft, "starter home" in Cupertino California in 2005 for $850K, I told him that I thought he was nuts.
The replacement cost to build that house (labor & matrials) would be no more than $180K - $200K (and then you'd have an up-to-date house to boot). So I told him that he should hold off til the market corrected itself.
But he was convinced houses had nowhere to go but up in perpetuity.
The fact of the matter is that house should only have been going up at the rate of inflation for the past 10 - 20 years as it had for the 80 years prior.
But prices more than doubled or even tripled and it will take some time before real prices get back to that long term house prices historic trend line.
And I don't know if 45% is enough to do that.