australia's housing bubble deflating, page-68

myproblem...lets try slowing the convo down (maybe then...)

ok?...you've asked (i quote):

nutnbolts, please explain why the prices will drop 40%? it didn't happen during the 2nd worst financial crisis in history, why would it happen now?.

and i explained (and am explaining again)that the number 40% is 'chosen' due to 'it'corresponding to how much ABOVE 'long term average' prices prices of property were/are !

simple enough, isn't it?

if prices were 30% above 'long term average' or 60% above "long term average" the 'needed' fall would be equivalent to those figures ! ! !

now...that takes care of the first part of your question (of which you seem to be full off...at least you're trying to learn...)

in the spirit of true learning i will NOT give you an answer to second question of yours, simply 'cose i believe that you're not ready for it yet (if you couldn't get the first from what i told you)...