It sounds like you are looking to buy to live in the house for the next 5-infinity years, right? And you can put 60% down?
I think a "bubble" only really hurts you if you are looking for a short term flip or are putting very little money down. If it is a bubble, and it busts, you can wait it out if you are planning on staying. Or, if you have to leave you lose your equity but you aren't trapped.
Is it a good investment? I don't know, I dont' think the houses we live in should really be classified as investments. But, I don't think you have to worry about the more common issues that are caused by a "bubble." I would look at what the rent, right now, for similar properties is and what you as a renter in the area would be willing or expect to pay to rent it. Also, long term, I'd look at the nearby resources (businesses, parks, roads, schools) to determine if you think they are on an upward trajectory. If the neighborhood is going to be desirable and the rent is close to equivalent with the mortgage that is a good sign.