If history is a guide, housing and equity markets will also overshoot, or may have already. Housebuilding activity in the US has essentially ground to a halt, but the US population continues to grow and needs somewhere to live. Some overshoot of house prices on the downside is probably unavoidable to restart demand for housing and, eventually, new investment.
The question is how to limit the downside’s extent. Similarly, while there is undoubtedly an overhang of investment at inflated asset prices to be worked off, equity price falls below fair value are how markets typically work to generate opportunities too attractive to pass up. Finally, the commodity price rise and fall is very large.