This Inman article http://www.inman.com/buyers-sellers/columnists/dianhymer/buy-less-house-you-can-afford by Dian Hymer confirms what we have been saying to Charlottesville, VA area buyers for the last 18 months or so.  Here are some other interesting points to consider:

1)      You keep your payments where you are comfortable

2)      You buy at a price less than the highest value in a neighborhood

3)      Hopefully, it will allow you to have a payment that should you decide to rent it at some future point, the rent payment will be equal to your mortgage payment.  That way should it not be the time to sell, you have the option of renting it until you are ready to put it on the market for sale.