It's really a warped perception imho. $1million isn't really $1million anymore. I challenge anyone in their 30ies right now to think $1million is all they will need for retirement. It's absurd to think that way, especially as the dollar continues down it's death spiral, increasing health costs, and general inflation. I'm not even worried about social security, because the problems with our health care system is much worse. Granted home prices are inflated quite a bit. But even outside of home prices, dollar doesn't go very far this much. What strikes me as interesting is that if home prices do correct say 50%, I can't imagine why well to do foreign investors wouldn't buy real estate in the states. I doubt such buying would really prop real estate, but it wouldn't surprise me if several folks end up pay rent to folks overseas. Dollar's decline plus a steep drop in home prices will make things for non-dollar currencies look so cheap.
But to put it in perspective. If you're in you 40's, my parents would think you paid ridiculously for your home(s) too. Back then (when the dinosaurs roamed the earth), beach front property weren't even six figures, or were only close to six figures. Of course, then, they were playing 13-15% interest rates too, but that's another story.
