Waterman,
You have shown evidence of your ability to budget and save. From this thread you obviously take large financial decisions seriously. You are already past many of the hurdles that result in people getting into serious financial difficulty.
In terms of buying a house, you are clear on the location that you wish to live in the medium to long term. You are clear on your space and personal needs so you are less likely to buy something that will not suit you in 2/3 years time. Whether house prices rise or fall, it would appear that there would be non-monetary benefits accrued by acquiring a home.
There are other factors to consider about the timing other than price. In many areas there is very limited supply so people are not waiting because they think that they will get a property cheaper, they are waiting for suitable properties to come on the market. Other factors such as area development plans or decisions on infrastructure location may also mean that it is beneficial to wait.
From a future financial security perspective it makes a huge difference whether you are looking at houses for €200k or €800k.