Whether or not to buy depends on how long you plan on staying. You need to understand that you won’t see any meaningful appreciation for at least 5 years and you’ll see serious depreciation (at least 10%) in the next 12-18 months.

So, I’d personally rent for at least a year and then start looking if you think you’ll be here at least 5 years. But be very selective as it will be a buyer’s market for some time to come. Also, you won’t have any problem getting a mortgage at the best rates with 30% down and a job, no matter how bad the credit crunch gets and/or prices continue to decline. But I think a mortgage is DEFINITELY the way to go. Unless you have a bunch more money, I wouldn’t be so quick to dump all my money into the real estate market. Diversify.

As for the “keep your euros” sentiment, the dollar won’t get much worse, probably just a $1.50. But that’s a long way from $0.87 where it was just a few years ago. Enjoy the purchasing power while you have it.