I'll agree to disagree .I agree to some extent but the stock market is far more volatile due to the ease of entry and exit. An emotional property buyer will still want proximity to work/transport/schools etc. which are more often than not the areas which are in shorter supply/higher demand = prices go up. That suggests to me that the strong moves are correlated to the fundamentals.
For example, you're far more likely to see a market frenzy in Essendon (Vic), than you are in some new estate out in whoop whoop with loads of land supply. That's my basic understanding anyway.