If people are paying more than 25% of their income for housing then they have no disposable income to stimulate economic growth. Even though home prices have fallen the cost is still beyond the reach of most and if they are in housing, they are paying too much.... most spend over 50% of their income for a place to live.
Hence the homeless population continues to grow and become a subculture of the U.S. Housing prices still need to fall more to become affordable for all. Housing is not an investment, it's a necessity. Now add food and medical costs and you have an economy that will never be healthy again.
http://lillianabel.blogspot.com/ (Necessities are Luxuries)