Go figure... People are speculating in the stock market, rather than making housing unaffordable. So long as this doesn't develop into an all-out, economy-wrecking crash, I'm happy.
The problem is that its actually good for the middle class and lower middle class. Home prices move up Mortgage payments. Young families spend a far larger percent of their income on housing.
The people who would and could spend their home equity on new cars and expensive shoes have already done so. Now the population is just paying higher and higher mortgages without much of a benefit.
The best thing for America is five years of price stability maybe 1% annual gains and a reduction in building to just over the population growth in every city.
In California and the Northeast, real estate is and has been overpriced for years. A correction is overdue.