Homes are not so expensive in the US compared to other developed nations - even before the more recent currency volatility. Especially on per square metre basis.
Eg - the
average house price in the UK is now about $435k and in London around $710k (sold) - and for that you get to live in a tiny, cold, dark, damp box. A quick google turns up an average US price of ~$300k. I have an apartment in Seoul that cost about the same as an average US house, except it's an 850 sq.ft box. According to a recent news story by NPR, the average size of a new American home is 2,349 square feet.
European housing prices tend to follow the peaks and troughs of the US market as seen from this graph (re-based in 2000):
So it loks like the US situation will be a wake-up call for the EU market.