Is Housing Being Tanked By Design?

This is why prices have tanked over the past several years. The foreclosure sale has been used in appraisals and thus brings down the prices in the neighborhood. When prices decrease, homeowners begin to reach the underwater stage. If the shadow inventory would be released, the housing market would relapse into a dark hole ------just when the market has stabilized based on the Case-Shiller index. I know in Charlotte, the market has improved. Is the lack of attention on housing by design because as housing goes so goes the economy. So housing is being tanked by design?