People have homes they can't afford, purchased with loans they didn't (bother to) understand. You can't "fix" that problem, except take the homes away from them.
June's foreclosure activity was the third highest on record, and the fourth straight month of filings on more than 300,000 properties.The rate would seem to be increasing, not stabilizing.
So how exactly is the real estate market going to see higher prices with this many more homes dumped on the market?
With the government doing everything it can to ensure people can't start new businesses, this is going to get a lot worse.