Deciding to buy a property in an area that you may have only seen a couple of times is a big risk and because York is a mainstream city for the north, prices are going to be expensive.
It can pay to look a few miles from York because the prices could be thousands of pounds cheaper and whilst it is possible you could comprise on quality slightly, if it is only the decoration letting it down, you have nothing to worry about, a lick of paint can work wonders.
Never rush into a purchase because visiting a place on holiday and then deciding to live there is a big step and most of the time once you move, you may get fed up very quickly. Always be certain it is something you want to do first.
It is believed for 2006 that house prices are going to rise again, another 3% will price many first time buyers out of the market so many are having to either rent or buy with others just to get their foot on the ladder. You need to decide, how desperate are you to get on the ladder, can you wait? If so I would, the prices will stabilise and possibly drop at some point and this is when you should consider a purchase.