[DontBelieveAugPolls]

I am not 100% certain that consumers would reduce their spending if their home values fell.

The wealth effect is dubious at best.

The collpase in the stock market in 2000-2002 didnt reduce consumer spending one bit

[Always Right]

I am not 100% certain that consumers would reduce their spending if their home values fell.

It won't. The worst case will happen is consumers may have to use more expensive debt like credit cards to finance their spending. And that probably isn't the case though because Americans have still accumulated an enormous amount of equity in their homes and a small decline is not going to substantially change that.