It boils down to how bad you want a house. Buying a home involves emotions, especially when women are involved.
If you can hold your emotions in check, you might improve your position (ie more bang for your dollar).
I am convinced an adjustment in housing prices is upcoming. It's just a matter of how much and when. Timing has risks.
In my opinion, the chances of price declines are reasonable, and the chances of major price gains are doubtful. Would you be willing to stake a down payment now, when it could be eroded by an upcoming price decline?
Give this 3 months. By then, you should have enough data to determine the outlook for 2006.