It *is* damping
The question is, how much damping is needed?
If too much is applied, the system will never reach the target value.
If too little is applied, the system will oscillate around the target value.
Right now it would appear that the housing market has no way to drive it down, while the other markets have no damping at all - there used to be the simple delays between trades, now with the new methods those delays are gone.
Of course, much of the profits are being made by causing those oscillations, which explains why traders are very much against any form of damping.
So, what is the transfer function for a market?