Being allowed to borrow less will put a lot of upward price pressure on lower priced homes (<$1M). Luxury homes (>$5M) in prime locations will be largely unaffected. It's the mid-range homes that will see a correction, by as much as one-third.
Even so, It won't be a uniform correction, ranging from just a few points in locations close to the core to the high end of the range way out in the boonies.
Nor will it be a long-term correction. Demand will outstrip supply again within a couple of years. Those who expect some kind of collapse in housing prices are mistaken.