No million dollar homeowner is crying right now.  This is just a figment of your imagination since you are not one of them.  Anyone who owns a home has seen 30-50% rise in their equity from July 2016 to July 2016.  It has now corrected a measly 5% over 6 months even after government intervention.  Having said that, I do believe that it will drop another 5-10% before housing market stability over the course of next 6 months.

Your quote: "Reversion to mean is 80%".   Current benchmark price for detached home is $1.48 mil.  80% reversion from this price would mean an average detached home value will be $296k.  Just to give you a perspective, the benchmark price for detached home in January 1998 was $358k.  Year 1998 is when you could buy a popsicle for 25 cents and a 2L coke bottle for 99 cents.  When taking inflation into account, your comment is absurd.  Even if a crash occurs, it will only benefit the rich who will scoop in and buy all the foreclosed homes by outbidding the poor.