Is buying a house sensible in the current market situation?!

1, 2 or 3. None of them really suit you, do they?

My tip is always to adjust your wishes to the circumstances. So point 2.

1. you don’t like (the equity doesn’t disappear – cash turns into real estate. If you then finance a house with the same bank, it might still be able to take a subordinate position on the condo). 3. hasn’t worked for three years already. The chances of suddenly finding something according to your wishes are therefore extremely low. So only 2 remains – but you are standing in your own way. You keep going around in circles and can’t break out.

Might sound arrogant, but it's unfortunately a fact: I can’t move into a residential area that doesn’t appeal to me / where I don’t feel comfortable. But you are right, that makes the probability very small. The condo thing still has a charming side; from time to time, houses are offered for exchange, so the house is too big and you want to swap for an apartment.

You should actually have found something by now. It will never be perfect.
Now it's about 30-40% more expensive. You should have already "taken" this increase.
Back then it was already surreal to you. The equity should now be higher.
In top locations it only works with top income.
It won’t get cheaper that quickly. There are plenty of current threads about that.

We have found relatively a lot (we are very active and creative there), but the compromises were always too big (way too big) or we were unlucky (in the end it still went to an agent).
What to do now, just keep renting?

Possibly live with more compromises. Except for the location, many things can be adjusted gradually.

It may sound arrogant, but unfortunately it's a fact: I can't move to a residential area that doesn't appeal to me / where I don't feel comfortable. But you're right, that makes the probability very small.
There is still a charming aspect to the condominium, sometimes houses are offered for exchange, so house too big, want to exchange for an apartment

It doesn't sound arrogant but rather like denial of reality. I also have colleagues who would rather live as permanent campers than leave the greater Starnberg area. But does it make you happy when you are confronted every day with the bitterness of never belonging to the lucky owners?

but compromises were always too big (much too big)

that's probably the reason: you are just very attached to your ideas. That's not really bad, but then renting is probably the only option. That's also not bad. Actually, from this point of view you don't really have a problem, because none of the options is bad or problematic. People are different: I would probably make compromises in the house size and garden size and also limited in the location. Others cannot do without a large garden. In this respect, it probably doesn't help much if others say here what they would do.

The thing with the condominium still has a charming side; from time to time, houses are offered for exchange, so the house is too big, they want to swap it for an apartment

But getting two properties and two families under one roof is probably as likely as winning the lottery ;)

This may sound arrogant, but unfortunately it’s a fact: I can’t move into a residential area that doesn’t appeal to me / where I don’t feel comfortable.

You then exchange a rental apartment (which is not the right property with a growing family) for at least a house that fits in terms of space (which you don’t like in terms of location). But at least you have the suitable property. Please remember, though, that houses and apartments can be bought and sold just like a car. If you had compromised three years ago, you would have so much equity through a sale today that it would be enough for a suitable house in a suitable location. Woulda coulda, I know...