Blast from the past

Back in 2007, Arnold Kling wrote:

Finally, Zimran Ahmed writes,

I think one inevitable requirement of unwinding the housing bubble market is that housing prices have to come down to fall in line with historic trends. In some areas this means very dramatic decreases -- maybe 40%+ in real terms? I'm not sure what a "deflated housing bubble" would look like if it did not bring prices back to historic norms.

I'm sorry, but unless by "some areas" you mean areas the size of a 9-digit zip code, we're not going to see 40 percent declines in house prices.

While all areas certainly have not declined by 40%, some areas considerably larger than a "9-digit zip code" have.