Primary Residence
FIRST
Think of your housing costs as a major monthly expense. (Like a car, major appliance purchase, or choice of vacation destination)... not an investment.
Your primary residence is usually held for many, many years, and you can not get out of that expense unless you sell (to rent) or sell (to move away / downsize). People are therefore "trapped" in their homes or exhange them for similar "traps" over the years.
The nicer the neighborhood and an increase in size of home, will drive how much it costs you. It is a personal trade off.
Based on it as an expense, which option makes the most sense for you, your commute, lifestyle, values, etc? This is your choice alone.
Next, double check that you can easily afford it. Then, do not be too worried about investment value. Like artwork, the value is in the use that you, personally, gain from it. Whether it increases a lot in value before you sell, compared to other properties, or not, is hard to control or predict right now.
Lastly, negotiate the heck out of the purchase price, the mortgage rate, and look for "sale" discounted prices.