If I were you I would pretend you are buying right now. Estimate what your mortgage payment will be when you buy. Subtract your current rent and put the remaining amount into savings, cd, etc. If you can make this payment for the next 8 months (comfortably) you will know you can afford a house. You will also have a nice little pot saved up.
Unfortunately, many of my borrowers think they can afford a home, but they do not understand the things they need to give up to make it happen. Don’t let your ego mislead you. It is better to rent and be able to pay your bills then own something you can’t afford. Keep saving until you have a down payment big enough for an affordable payment.
You may have reasons for buying a home before the market reaches the bottom (kids, family, etc.). You don’t have to wait for the bottom to hit. But you do need a payment you can afford. Follow the above and you will be in good shape sooner than you think.
