Even if the market is inflated a bit, what would you (as secretary of treasury or president, someone who can affect the market) to bring it back to normal?
The answer, IN MY OPINION ONLY, is nothing. Any change you make to the system to combat this problem (a real problem, I am not disputing that) would be worse. I think that the market will adjust itself, and the pendulum will swing the other way.
Legislating prices, giving tax breaks to new home buyers, giving incentives to home builders to increase supply, all of these options come with drawbacks. The reason Greenspan is the most respected man in the world who holds an Economics degree is simple: He doesn't flinch and start fucking with the system when pressures present themselves. He is a long-term thinker, and his steady and predictable actions in the past have prevented unhealthy speculation in different markets. People know what he is going to do, so why speculate?
I am talking about North America housing market, not any country in particular.
I have to add, one should not be so bold as to assume that they can afford a house right out of college. Part of being a new college grad is to spend all of your money on beer and women. Worry about the mortgage in about 5 or 10 years.
