Update Jagger Hurting Targeted Real Estate Sites

Many of the emails I've gotten in the past week have been concentrated in the area of real estate. These are the standard post-update panic attack type messages, but the focus made me think. Then I was pointed to this thread at SEOChat by EGOL (who's sadly too busy to post on this himself) and also wandered over to DigitalPoint, where I found an 86 page thread on Jagger that includes several members complaining about real estate site issues.

Luckily, I received some PMs on the subject that will allow me to showcase some of the specific results in SERPs for:

As noted in the SEOChat thread, the site HomeGain.com has gained extraordinary visibility during this past update, as have many large, multi-city and state real estate sites. This has come (according to my informants) at the expense of smaller real estate sites and pages operated by local agents or companies. Two questions come to mind:

  1. If you're a Google engineer, how do you tweak your algorithm so smaller real estate sites are pushed out by the bigger players?
  2. Are bigger real estate conglomerates more relevant to local real estate related searches?

 I assume that much discussion is taking place at REWebmasters forum, but it's been inaccessible to me all morning.

UPDATE: Morgan has it back up and had this to say regarding the update:

We do recips on all our sites and none were negetively effected (That I have seen yet) from this update. What we did notice, is that our sites that ranked well with internal pages that we didnt build links for, lost some ground (Some cases a lot) - what this tells me is that overall site authority is not a strong as it was before - solution we will build links to the internal pages that dropped and see what happens

Sadly, this seems to contradict the findings of our own small examples. Perhaps we can work it out more in the comments.