With housing prices at record highs in North America and the U.K. you may want to consider buying a home in Italy instead. The mayor of Salemi, a small town less than half an hour outside of Palermo in Sicily, has announced plans to sell homes in the ancient Mediterranean village for the bargain price of a Euro. Mayor Vittorio Sgarbi is hoping the low prices will revive the town, which was struck by an earthquake 40 years ago.

What's the catch? The homes being offered for sale were all damaged in the earthquake and will require extensive renovations to be made habitable. Buyers will be expected to finish the renovations within two years and will not be allowed to make any changes to the original style of the home.

Mayor Sgarbi's initiative has generated some celebrity interest. Rock star Peter Gabriel is said to be considering buying one of the homes in the historic Sicilian town, and Inter Milan football club president Massimo Moratti has already taken over one of the homes.

Want to take on the challenge? Contact Mayor Sgarbi via his website http://www.vittoriosgarbi.it/j/, by visiting his MySpace page at http://www.myspace.com/vittoriosgarbi, or call the Salemi city hall in Sicily at (+39)0924-991-111.