Peter Schiff: Unless its 50% off, now is not the time to buy a house
Here is a great answer on why now is not the time to buy a house. I have put Peter Schiff up here before. He is the head of Euro Pacific Capital and called the housing bust long before most other economists. You can catch him on The Fox Buiness channel and other media outlets.
Unless your paying half, his recomendation is to pass on buying a house right now. Its simply too early in the cycle to be buying. I hope you find this to be helpful.