Hey Sam, I think you are approaching this pretty well right now and I wouldn't change anything.
Trying something and watching for a reaction is a staple of the DB-technique. You've tried the 'more distant' approach and have noted an improvement. Keep milking that for awhile.
I would not become more distant in a way that causes negative feelings (i.e. blatently snubbing her).
On the house topic, I would be pleasant, but not feed her delusions. I would say something like: 'Houses are a very long-term investment. Buying one just to be near us may not be good if our relationship doesn't improver and I need to move on.'
My thread, Carpe Diem #4 Orig Thread: Carpe Diem #1