Will the decline in the stock market affect the real estate market? Of course it will. It has to!  Why will it hurt real estate more than it ever has than before?  Because now, the lenders are requiring borrowers to put down more money than they did before.  Now, instead of 100% or even 90% financing, borrowers have to put down 20% or more.  This means that they need to come up with more cash.  More cash that they obviously did not have before and have less of now.  This is going to hurt the purchase market and will inevitably disqualify more and more people from purchasing homes.  More homes on the market. Greater supply equals greater demand. A greater supply of house flooding the market means that eventually prices will come down.  How much? Who knows. Do not forget, many of those whom have their houses on the market now, are tapped out of equity and might not be able to lower the price. I am waiting and watching.  What are you doing? –      Dale Siegel