1.1M house, is it stupid to even consider?

Is it stupid to consider buying a 1.1M house? PITI+HOA with 20% down would be around $7500 per month.

Half of income is salary which is pretty stable, but the rest is all business/contractor job so the money fluctuates. But we are moving to grow that income.

After all the deductions (401k, ESPP, insurance), we currently net about $12-13000 a month. We are hoping to see net income of $15-16000 after we move with a conservative expectation. **I also could put less in my ESPP and 401k to make extra like $1500 or so but I really don’t want to touch these two unless I have to.

Numbers seem doable but we want to have a baby soon like within a year or two :( Never had one so can’t really assume $$ cost per month. Would it be impossible with a new born baby? We will have at least 60-80k as emergency fund after transaction for that..

Thought process for this buy is that SD house prices never go down, so might as well buy a house and wait for the rates to come down. If we can survive till the rates drop, the house price will go up & payments will reduce. And we may make a lot more than we anticipate.

I think my brain isn’t working clearly after thinking about this too long. We are even selling a house with 3% mortgage rate to move that only costs us $3400 per month… Maybe living at a cheap rent and saving that extra $2-3000 a month is a wiser decision??!

Can anybody please help me think logically and objectively? Thank you.