Saving Approximately 9k a month after expenses. Should I buy a house?

I make approximately $12,500 a month after taxes, pension, HSA and other deductions have been taken out. I just recently moved and now my rent is going down from $2700 a month to approximately $1500 a month (co-renting). I did the math and my expense per month is approximately $3100 - $3500 a month after all my expenses are accounted for. I live in the bay area. After all my expenses are paid, I save roughly $9k in cash a month which goes directly towards my savings account. I have maxed out my 457b for the year.

Currently have approximatley $331k in cash and approx $236k of that is in a savings account (5% interest rate) and earns about $980 in interest a month.

Approximately $91k in 457b, $87k in pension, $24k in HSA, $30k in TSP 401k, $36k in IRA (do not qualify to put any additional due to my income rate).

I have never owned a home and everytime I look at the prices, I start second guessing myself. I qualify for VA loan so i do not have to put any money down. However, I think paying 20% is actually better to lower the monthly payment and atleast do some damage towards the interest rate. I am 32 and feel like I really should have a house by now but the prices are freaking me out.

Should I just continue to save cash on the sidelines and hope housing prices come down and then buy?

I think I have been in FOMO for like the last 6 months but i cant justify paying these prices with the interest the way there are and home prices not coming down as fast.

Any advice on what else I could do with my savings or other investment opportunities I can do? Should I buy investment property in low cola areas?

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EDIT:

I was putting in approx $1250 per paycheck in post tax 457b/ pre tax 457b but have maxed out for the year. When I was putting in to my 457b, I was taking home approx $9600 or so. Now i take in more since i stopped contributing to my 457b since about a month ago.

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