a good time to buy a house?

Hi,

I live in Queens, NY just started a job and thinking of investing in a
house over the next few months. The house prices around my area have
sky-rocketed. It's really actually obnoxious how much people are
demanding for houses. Now, I don't wish to spend all my money in
taxes and some tax breaks would be much welcome. But is it really
worth buying a 4 bedroom small house for 500K in today's market? As
far as the market is concerned, I am quite agnostic to it as I don't
plan on selling it in one year. So, even if the prices go high, its
not going to help me much, as if I sell it and buy another house, even
that house will be more expensive and vice-versa in terms of the prices
going down.

I guess in my mind I do know the answer, but shelling out so much money
for a house seems preposterous to me. So if you guys were getting a
42% tax on your income and could afford a decent downpayment on a
house, would your advice be to buy a really expensive house? Or wait a
little while as the alleged "real-estate bubble" subsides?

Help is much appreciated. Thanks.