If you look at a home as only an investment we need to compare it to other investments you might make with this money. First there is the savings account which with low interest rates only pays out about 0.5% if you are lucky. The most common investment would be the stock market. If you look at the stock market and the housing market as both a long term investment you will see the housing market wins. Looking at the data from 1975 to 2012 you will see the stock market would give people a return of 10.4%. During that same time frame the housing market gave people a return of 11.6%. This is a 1.2% difference making the housing market the better investment.
After the Great Recession and the crash of the housing market many people worry about that happening again. First many of the factors that lead to the housing crisis and the depreciation of housing has been eliminated. Second housing is now starting to appreciate once again. I not have a crystal ball but if you look at it historically there are more ups and downs in the stock market then there ever was in the housing market.
So to sum up. Is it a good time to buy a home. Yes it is. You do have to live somewhere and even though some stocks do pay premiums you cannot live in a stock. A home puts a roof over you and your families head. It saves you money on your yearly taxes. It appreciates year after year giving you equity that you can use. Finally as I have shown you as an investment it out earns the next highest return investment you can