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.
I'll agree to disagree .