I find the performance of the stock market--whether good or bad--to be mostly irrelevant. Of course, I realize, as the DOW continues to drop, that the opportunities to access cheap capitol will also decrease (which will be offset somewhat by the additional liquidity and a Fed-rate cut). Nevertheless, whether or not the DOW continues to drop, I always have the option to purchase real-estate using creative financing (which has nothing to do with the DOW).
Stock market going down means less cash to purchase a home. However, when the DOW is dropping so rapidly, real estate looks like a better investment. I paid down my mortgage just before the stock market started tumbling. Glad I did that!