I suppose this really is a tricky question to answer.  The more I think about it, the answer is "it depends" and clearly there is no one size fits all anwer.  I'll also say that for some people, home ownership is not for them...and that's okay.  And, of course I'll mention that there are plenty of people that would like to own a home, but they don't "qualify"...at least from a bank perspective.

I'm a big believer in home ownership, and I think it's a good thing...provided it's right for the person and right for them at this point in their life.  Of course owning a house is also a big commitment.  It's a long term commitment.  In a sense, it's like having a kid.  Once you have a kid, you always have a kid.  There are times when it's absolutely wonderful, but there can also be some difficult times (like when they get hurt or get sick).  You have to take the good with the bad.

When you own a house, you own it...until you sell it.  So, if things go south in your life (e.g. you lose a job, or there's a big storm or flood that impacts your home, or you decide that you want to relocate and move across the country), you can't just pick up an leave tomorrow.  When you rent, you have much more flexiblity for these things.  But, with a house, of course, it is an investment, and that means that long term, you may be able to sell your house at a profit.  When you are paying your mortgage, you are investing in yourself/your house.  When you are paying rent, you are paying someone's mortgage, while they get the investment gains.

So here are some things to think about:

1.  Are you "settled" in the area/do you intend to live here for a while?  For perspective, when I was fresh out of college, I lived in many cities, including Washington DC, Chicago and Cincinnati.  I didn't know if I would live in any of those cities.  In fact, I was pretty sure I wouldn't.  After all, I'm a New York Girl.  And, of course, years later, I moved back to New York.  And, this is where I bought my place.

2.  Are you "settled" with your personal situation...or settled enough for the time being.  So, for example, are you single?  Or are you married?  If you're married, you may want to buy a joint home, especially if you are planning on raising a family.  If you're single, you may or you may not want to.  I know plenty of singles who have bought houses and/or apartments and then got married a few years later.  Some of them sold their original place so they could then invest in a nicer/larger home; others keep the original and rent it out as a means of income which also enables them to buy a larger home (and gain on the long term investment). 

3.  Can you financially afford to buy a house?  So, do you have enough savings for deposit?  Do you have a stable income that will allow you to pay the mortgage for years to come?  Do you have a safety cushion to keep paying the mortgage?  What if you lost your job?  How quickly could you replace your income?  How much savings do you have?  How transferable are your skills?  What if there are some major unexpected expenses in your life? (e.g. car accident, sickness, a tree falls on your house, etc.).  Just plan ahead and make sure you have a nice safety cushion for the "just in case."

4.  Will you qualify for a loan?  I'm of course assuming that you are not buying a house for cash...because if you could do that, you'd probably do it in a heart beat.  Speak to a mortgage broker to understand what you qualify for?  Does this jive with they type of house you want or is there a mismatch? If it's the latter, you may want to consider waiiting.  Or you may need to settle and then later trade up to the home you want.

Notice how points 3 and 4 (can you afford a house and will you qualify for a loan) are 2 separate points.  Because it is possible that you may be able to afford a house (e.g. the payments may in fact be lower than the rent you are already paying), but the bank won't approve you.  They may feel you are too much of a risk. This could be because of other debt that you have (e.g. student loans, credit card debt, car loans, etc.).  You see the bank is taking a risk on you.  Markets are risky too.  So, it could be that the market does (or could) go down in the future and hence their investment isn't worth it) or you may have an expected issue in the future. So, the bank needs to hedge their bets, and it is possible that you may not qualify based on your debt to equity balance.

Also bear in mind that it possible that you will qualify for the bank loan, but you yourself may feel that you're not financially ready.  If you have an income that varies a lot (e.g. if you are commissioned worker), you may not feel comfortable investing in a house.  Or, if you prefer to spend your hard income on other items (e.g. cars, vacations, shopping, etc.) you may just feel that a home is a lower priority for you.

Only you can answer these questions.  It's possible that now is the right time...or it's possible it's better to wait until you feel more comfortable.

Also understand that while I used the kid analogy, a house is a bit different as it's an object and yes, you can buy and sell it.  It's rare that you can sell it instantly (vs a stocks or mutual funds that you can often sell today or tomorrow).  Just recognize that selling a house takes time and preparation.  If you want some tips on selling your Long Island House fast and "as is" check out this article.

BTW, as a general rule, I would buy (or sell) a home when the time is right for YOU.  I would not base my decision base on the marketplace.  The market always changes.  Do what's right for you personally.  Don't try to time the market. It's an impossible game and it will drive you crazy.  Don't be swayed by your friends buying (or not buying). Again, buy when it's right for you.