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The average person should ideally have a home and a mixture of equities and bonds/cash.
The problem is that the cost of housing in most parts of the developed world has now come at the cost of saving for retirement and rainy days.
Even if you bought something at the peak of the market (say this month), I wouldn't worry too much as long as you can afford the carrying costs of your property. If you have a 5-year fixed mortgage, that should be a sufficient amount of time for the market to adjust. Even though banks will likely be much stingier now about who they lend money to, I think low interest rates are here to stay in the medium term.
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