when buying is so much cheaper in our area
I would say that changes the equation somewhat, although I'm not sure how that applies to your case. I imagine the mortgage/taxes/insurance on a $160,000 loan (with 20% down) will be more than your current rent? But I also imagine the home you plan to buy is larger and nicer than your apartment. Don't underestimate the costs associated with owning a home, though. There are ladders, tools, etc. that often need to be purchased, even if you don't succumb to the temptation to buy new furniture.
I think you should remove at least one of the loans from your expenses before you buy a home. In that case, I would suggest the student loans as planned, since they are smaller. This would improve your monthly cash flow. The percentage difference between the two is not stark enough to matter in the long run. Plus you could see this as the Dave Ramsey/snowball approach, i.e. to pay the smallest loan off first in order to keep yourself motivated.
Chock the car loan up to a bad decision and just commitment yourself to paying it off as soon as possible and never having a car loan again. You're still very young and are allowed a bad decision to learn from :). All things considered it's not a tragic mistake, and your student loans are comparatively low in this day and age, so bravo for that.
Retirement is still the elephant in the room, but it sounds like you know that already and are planning to accelerate that. I myself can't imagine owning a home by 25, but I wasn't married yet and not nearly as together financially as you and your wife are.