This makes sense at first blush, Powayseller. But think about it: if we are in the midst of a housing depression, buyers will be few and far between because no one wants to catch a falling knife. We will see much more of what we are starting to see now: a glut of homes on the market.
Your friend is fooling herself if she thinks she will be able to easily unload her home during a crisis. What makes her home so much more special than the many others that will be on the market in her neighborhood? I stand by what I said: when the hammer falls, you will want to be a buyer with no existing property to unload.
