[quote=sdrealtor]It is all driven by government-limited supply and government-supported demand.
[/quote]

Fixed your post.

On the supply side, government is limiting supply by propping up banks who would otherwise implode and release their REO inventory onto the market.

On the demand side, Fannie and Freddie are still over 90% of the mortgage market. Remove those two and demand (along with housing prices) would crater.