Thought I'd give a wife's perspective...
Having a house represents more than just a financial investment. It means the security of knowing your family is settled, that the kids can be near a decent school, knowing your community, being near friends etc etc. All this creates a *very* strong urge to buy.
HOWEVER, I wouldn't dream of buying right now. And we have had some annoying rental experiences too (the pinnacle being asked to vacate early the day after I'd given birth), but I still wouldn't trade all this for the daily worry of watching your house's value plummet and stressing about the interest rates and meeting repayments.
When I'm having a weak moment, and want to buy, I just do a bit of maths, and work out how much nicer a house I will be able to buy when the market has gone down 20-30%. This little mind trick may help others who have nesting instincts.
LMNF