Others here have covered the financial aspect, but also - do you want to own?

Some people really are made to be homeowners, love to nest, need it to feel stable, and would be happy owning even if they didn’t get any big returns on investment.

Some people really hate having to deal with upkeep, like flexibility of moving, and would be stressed beyond belief if they found out they weren’t going to make a lot of money once they sell.

I’m personally the former, to the point where I bought a two bedroom condo that realistically won’t net me any big sum of money in 6-7 years (the average length of time for condo owners), but it brings me a lot of emotional and mental comfort to own and I LOVE that I can really, truly nest. At the same time, I have friends who think I’m crazy because they’ll only buy if they can buy their forever home and if it’s one that will gain a lot of value as an investment, and even then they’re already not thrilled about having to do everything themself.

Neither group is crazy, they just have different needs.

This is a really personal decision that goes well beyond finances, so let your friends pay $100k above asking and know that it makes them happy, and let yourself not do that because you know it makes you happy.