Exactly. And people still want to pretend that owning a home now is good diversification from the stock market which now is also filled with companies that are

Exactly. And people still want to pretend that owning a home now is good diversification from the stock market which now is also filled with companies that are utterly dependent on the supply of credit. The pressure on RE market is already keeling over, not just in the US but around the world (thanks to CB's following largely the same policies for so long in this synchronized "recovery").