While it’s true that real estate exchange traded funds have doubled off their lows since last March, they’ve still got a long way to go before the sector can be considered “stable.”

At the very least, real estate’s comeback from the lows is impressive. Investors had priced in total financial ruin that never materialized. But now the market may have gone too far in the other direction; there are concerns that it has “overshot” and calls for a strong recovery are way too hopeful at this point. Worse yet, if a double-dip recession strikes, real estate stocks could be among the hardest-hit, says John Spence for MarketWatch.

The chart below, the Affordability Index of US Residential Property, comes courtesy of the New Observations on Real Estate, Mortgages & Life blog. The Index is computed by factoring in home prices, mortgage rates and income.

Let’s have an open thread and discuss in the comments section whether this represents a buying opportunity, or is it a question of fools rush in where wise men fear to buy? Click on the "comments” section below and share with me your views on whether I should part with my South African rand for a residential property in some part of America.

I think there’s a television program called, “Million Dollar Listing.” I’ve never seen it.

Instead, I find myself in scores of conversations with real estate professionals. And if you speak to enough of them about their industry, your head will start to spin.