Let me preface this by first asking where you're planning to move?
Why the @#$% do you want to spend half a million dollars on a house?
West Coast and that is the the going rate for the area. My wife will make considerably more money which will help offset the higher COL.
Even where I currently live a home in a respectable suburb will cost around $500k.
That's pretty crazy. We have a couple houses in our neighborhood in the 500-900k range, and they're insanely nice--or monstrosities, depending on the owner.
If it were me, I probably wouldn't hold that much cash, especially with a paid off house. Are you planning to sell the condo at the same time you move? Given those numbers, I think I'd be OK taking out a 300k mortgage on a 500k house.
Depending on your risk tolerance, even holding a year's spending in cash would still mean doubling your investment account.
Also, why aren't you maxing your retirement contributions?