Peter makes excellent points.
Interest rates are quite low right now, and, short of a 1929-style event, it is highly unlikely that values will drop any time soon - banks, consumers and county auditors have far too much at stake in keeping home values stable.
One other thing not yet mentioned is that home mortgage interest is the last great American income tax deduction. By reducing your taxable income by the amount of your interest payments, you effectively reduce the net out-of-pocket cost significantly, especially during the initial years.
Finally, the amount of property taxes and utilities you pay as a homeowner varies WILDLY - even within small geographic areas - due to not only the intuitive things like levies, bond issues, and park districts but also utility rates controlled by mutual companies, cities or other private or government entities. My sewer tax is ~$100/mo for no particular reason except that my city can raise that rate to increase revenue under the public's radar and without statutory interference.
