I suspect there will be some distressed sales/foreclosures – but not in the quantity in other market segments. For two reasons: most who bought/qualified for those big houses had substantial resources so they’re hoping to ride it through. Those that stretched beyond their means will still face some pain – but the number of cases will be small enough there won’t be as much price pressure on the overall segment.
The market segment I expect to feel more pain is the 900k-1.5k group. It seems like a lot of folks bought in that price point that really couldn’t afford it. (Based on anectdotal evidence of water cooler talk at work.)
