A 20% pull back in prices when prices have just increased 20% sounds like nothing to be concerned about. Certainly not for the banks for sure. But a 20% pull back on 500k is a pretty scary figure compared to a 20% pull back on 250k
That could be the kind of pull back that causes a price trend to overshoot on the downside as owners panic for the exits.
I just hope employment holds up for every ones sake. I don't really give a hoot about house prices either way. I care mostly about the need for a taxpayer funded bailout of the banks. That would really get my back up.
