[throwaway5752]

Buy a house because you want one, and because you like the specific house. Just not because it's an investment or FOMO. If you pay $100,000 more than you would at a 100 higher basis points, but you live in it 20 years you will certainly build back equity and hedge yourself against rents to make up the difference.

There are places where home prices are just getting back to where they were in 2006, though. You can certainly end up underwater on a mortgage and stuck. Property taxes, insurance, and maintenance are high fixed costs with a home.