Investors need to be mindful that the laws of gravity apply not only to Newton's apple - they also apply to asset prices, including house prices. In real estate, the "laws of gravity" relate to things like population, income, household formation and the earning potential of the asset.
Banks have extensive information about borrowers through their lending relationship, and this information may be much better than the information available to other outside stakeholders. When the bank is also a shareholder or acts on behalf of shareholders, this information can reduce the informational asymmetries between firm owners and managers.