re: What will the flood do to the housing market here?

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Wouldn't one thing to do is get your home reappraised while values are high, then cash out some of that equity to purchase depressed properties, rehab them, and sell?

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The million dollar question is, how will the appraisers appraise these properties, and how will the banks view them.

There was a rather large number of houses bought in 2006 at inflated prices, that were foreclosed upon several years later when prices returned to normal and people walked away from them.

Will appraisers this time factor in some "exception" and adjust values accordingly? Will the banks add LTV overlays to purchases and refis?