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It's funny how people look at their primary residence as some sort of piggy bank. I've never followed that train of thought. My house is a place I live in first and foremost. Even if my house depreciates in value, even below what I paid initially, I'm still ahead of the alternative...renting. There you get zero back on the money you've spent for living expenses. You have to pay for living expenses some where either in a home you've purchased or a place you're renting. I guess there's an alternative where you wouldn't pay an living expenses where you're living with someone else such as your parents.
I know this is a generalization, but typically those that sweat their home values are those that don't plan on holding on to their homes for any length of time. Me personally, I actually would prefer prices to drop because I would have to pay less in property taxes. I went about buying both my properties with a relatively conservative plan and I'm not underwater on either house even with a massive correction. And real estate is just like stocks. The "losses" from a crash/correction is only on paper. You only realize those losses when you convert to cash.
Also, it's funny how people sweat how their primary residence needs to appreciate in value when the same people won't bat an eye on buying a large depreciating asset such as a car. Or in most households....cars.
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