Ask Newsweek

When the stock market and economy soared, housing prices kept going up. Now that the market is in a slump, how come the prices don't seem to come down?--N. Bujji, California

Real-estate prices don't exactly follow the stock market. Yes, they rose in the boom, as real incomes and investments gained. But when growth in home prices slows (as is happening in some places now), people may simply decide not to sell. What's more, a lot of unhappy investors are switching some of their stock-market money into homes. The economy has to go bad for quite a while before the housing market cracks. Happily, we seem to have dodged the bullet.