I hope your right about home prices correcting. I view home values in desirable area (and no one seems to share this view) as largely tied to interest rates. I think for a fair percentage of homeowners, it's the only "investment" they have. As the value goes up, and the interest rated is stable or goes down, they refinance. So, in ten years, the house is worth twice what they paid for it, but they have zero equity. The problem comes when the market drops, and they get upside down and dump them.
Anyone getting a home loan today has a payment that is 50% more than the same loan amount would have been three years ago, that is not insignificant.
It seems like in the US you can default on loan and buy a new car with zero down the same day.