housing to devalue 40 to 60 percent, page-87

Mookie what your not understanding is the debt to household earnings ratio is unprecedented.

Yes all those wonderful economic factors your describing are in play, but this will not always be the case.

When the economy slows and it will eventually, there is still the debt that needs to be serviced. Economy slows, wages drop, the second job disappears or the overtime isn't available. Which ultimately results in less household income.

Household's are already on the edge as it is and those factors your describing, households need every inch of it.

With such good times rolling but massive debt needing attention its only obvious when the economy slows, house mortgage defaults will go up. This will in turn affect real estate prices.

To what degree is speculative. 40-60% average seems a little extreme in my opinion although there maybe some areas which will see this.