[quote=SD Realtor]Stocks move alot faster then home prices.
Your government is not propping up the stock market as much as they are the housing market.
There are serious margin requirements for stock purchasing but yoiur government has made it clear that if you borrowed to buy a home and cannot pay it back, that they will backstop you.
I can go on and on if you like. [/quote]
I agree that stock are more liquid and therefore price fluctuation occurs faster, but I am not in complete agreement that housing prices have been propped up by the government much. California did delay foreclosures by a few months, but if you look at the rescue packages announced to date, few if anyone irresponsible qualify. The most you can say is that Government is giving upside down homeowners, banks (I doubt it) the false hope that home prices will hit bottom soon and recover, and thereby holding onto higher asking prices.
However, if you compare the the housing prices of this decline over previous declines (I think Rich put up a few), the decline pretty much mirrors the incline, just like previous housing boom/busts.
