I think a case can be made for FNMA and now FHA actually contributing to
keeping home values down even with the $6000 to $8000 hand out.

Since their intervention last May they have created valuation requirements
that virtually insure that you live in a "declining" market. According to FNMA, if the median home price for comparable properties has declined OR if there are more comparable properties currently for sale then have sold, your home is in a declining market. Most of the time there are more active
listings then sales so just about everyone lives in a declining market, even if
the median sale price has been stable or even bumped up some. And now
FHA has adopted these guidelines too. Thank goodness Ron Sims is on the job!!