I hear you on housing. I'm planning to buy a 'family home' in about three years. I would love it if the market corrected in the meantime. But if it doesn't, I'll still buy for psychological and lifestyle reasons - I'll just be making damn sure that I have a huge deposit and the place is three times the larger of my two household incomes or less, so it won't be a tragedy if the price drops 50% after we buy it.
Basically, as long as you can REALLY afford it and you'll live there for 10 years or more, I don't see buying a home in abbubble as that terrible a concept.
Now, investment properties, on the other hand...