Settle a debate - Should we buy a $1M house?

Details:

• Income: $350k (Single earner)
• 2 children (no childcare, partner stays home)
• No debt (no car loan, student debt, cc, nothing)
• Downpayment $200k
• Investment (Stock & rental property) ~$700k (not planing on touching this right now)
• Emergency Fund (Not included in downpayment) $30k

We are in our late 20's. We were trying to stick to $750k which already felt like a lot, but we cannot find anything in that range that we like.