Anyone explain this please (Emmaus, Northampton: foreclosures, renter, credit)

[possible]

Originally Posted by Stavs

Plenty of jobs in Florida? That might be, but they are low paying-really low paying.

When you consider the average home income in Florida vs PA and take the cost of housing it's much cheaper in Florida. Have a great new year we are heading to West Palm for the night.

[toobusytoday]

If there are jobs in Florida and the cost of a house is more expensive up here, why move? What is attractive to you about this area?

Hope you had fun last night, it's really, really cold up here!

[possible]

Originally Posted by toobusytoday

If there are jobs in Florida and the cost of a house is more expensive up here, why move? What is attractive to you about this area?

Hope you had fun last night, it's really, really cold up here!

The money, the money, the money! Allentown seems to have experienced the same problem we did and many other places in this country. It's fairly obvious that prices around Allentown are getting back to normal and it seems your just 6 months to 1 year behind Florida in regards to prices coming back to reality. A few years from now in Allentown I will be making over twice what I was making in Florida and prices most likely will be very cheap. The price of housing couldn't sustain those levels and it was a once in a lifetime disaster. While I feel horrible about all the people losing their homes, it wasn't like someone put a gun to their head and said, "buy a home that's more than twice what you should pay". I've been doing nothing but reading up on this housing mess and the more I dig into it, the more interesting it becomes. NBC nightly news doesn't do justice for what's really going on across America in those places where prices did this incredible jump. It took a few years to built those unsustainable values and it's obviously taking a few more years to get back to normal. I would rather be around Alletnown making more money than Florida when the prices are what they should be. That's why I am definately taking the job.

[EmmausRocks]

Some people (realtors & people who overpaid during the bubble) like to say that the Lehigh Valley was not part of the housing bubble. That always make me laugh.

The average cost of a Lehigh Valley home in the year 2000 was around $100,000 US dollars. At the peak of the housing bubble around 2006 the average Lehigh Valley home was around $230,000 US dollars. That's an increase of about 130%. That's the same increase that was seen in places like Florida, Nevada, California etc. How anyone couldn't realize that's a increase that's never been seen before in history and why every economist (besides the one's on the national association of realtors payroll) has proven this was a national housing bubble with too many markets going insane. Salaries went down during this time due to inflation (lehigh valley inflation was around 7% which nationally was only around 4-5%). Either way prices are crashing and will continue and more than likely will end up around the mid to late 90's level before the level off. You won't ever have this type of increase that happened.

Here's a great graph that proves too anyone with a brain that this housing bubble was unlike any other increase of housing we've ever had.

[EmmausRocks]

I would like to hear the spin people try and use from this data. Here's the information on the man who created the chart. Try and SPIN please!!!

Robert Shiller - Wikipedia, the free encyclopedia

[jjj]

These charts can be tailored to show just about any kind of raise or slump in the housing market. The problem is they are basically just a general average. As you can see this does not include new home construction and sales as this could represent at times more then half of the home cost fluctuations throughtout the years. For example it shows a minor upswing in the 80's when actually there was a housing boom with similar cost upswings and downswing that has been currently going on, Home prices in certain areas nearly doubled and then dropped back down. It is not reflected on that chart. Yes, Lehigh valley Real estate is on the downswing but is not all the gloom and doom , it has happened before.

[EmmausRocks]

Originally Posted by jjj

These charts can be tailored to show just about any kind of raise or slump in the housing market. The problem is they are basically just a general average. As you can see this does not include new home construction and sales as this could represent at times more then half of the home cost fluctuations throughtout the years. For example it shows a minor upswing in the 80's when actually there was a housing boom with similar cost upswings and downswing that has been currently going on, Home prices in certain areas nearly doubled and then dropped back down. It is not reflected on that chart. Yes, Lehigh valley Real estate is on the downswing but is not all the gloom and doom , it has happened before.

You are one of the people who overpaid, it shows in your answer. This is a chart which was created by Robert Schiller, the man 1/2 responsible for the S&P Home price Index(that little old thing).

This has never happened before, hence the insane rise of the chart! The data is not a lie, that's what realtors want you to believe (are you a realtor)? Prices rose in the late 80's around the valley and then dropped back down to original levels a few years later so if that's your example, thanks! That's exactly what is going to happen now but worse! Prices were rising at 3-5% annually during the 90's and that was historically too high. You see housing has historical value. If we believed you then why not have another DOT.COM bubble?

Now when you realize you overpaid(you already have negative equitity, everyone who bought during the bubble does) then it will be easier to accept. Either you can keep paying the mortgage and watch similar homes on your block sell for 1/2 of what you paid or you can walk away, file bankruptcy and 2 years from now buy again. Honestly, if I were a home owner in the current market who bought during the bubble, I would do the bankruptcy thing and around 2 years from now when the bubble is closer to being near the bottom with prices getting back to pre 2000 levels, I would buy. That's an option many people are doing and I can't blame them.

Moderator cut: website

facts are there you can ignore them or trust the realtors
you make the call!

[jjj]

Sorry to say ER you couldn't be more wrong in your evaluation of my thread in this forum. I really would not care if I bought at the peak of real estate (b ubble) unless I was buying for an investment. Actually I bought in the Lehigh valley in 1999. And as far as you chart, I can still tell you that it doesn't reflect the real estate boom from1986 to 1989. So that chart and the person who created it is no better then anybody who could compile a bunch of averages. And as far as you reporting all this negativity you really must be an angry, sad person who enjoys posting this kind BS. Seems you really get pleasure out of this type of posting. Did you ever think that lower real estate prices could be a good thing? Maybe it might get some people into there first property ! So anybody out there who did buy at the market peak , in time you will get your equity back.

[EmmausRocks]

Originally Posted by jjj

Sorry to say ER you couldn't be more wrong in your evaluation of my thread in this forum. I really would not care if I bought at the peak of real estate (b ubble) unless I was buying for an investment. Actually I bought in the Lehigh valley in 1999. And as far as you chart, I can still tell you that it doesn't reflect the real estate boom from1986 to 1989. So that chart and the person who created it is no better then anybody who could compile a bunch of averages. And as far as you reporting all this negativity you really must be an angry, sad person who enjoys posting this kind BS. Seems you really get pleasure out of this type of posting. Did you ever think that lower real estate prices could be a good thing? Maybe it might get some people into there first property ! So anybody out there who did buy at the market peak , in time you will get your equity back.

Prices rose about 20% in the 80's because of the fact that 78 was happening. Then prices dropped and didn't rise until the mid to late 90's when they started rising 3-5% a year. This bubble was experienced since 2002 prices rose over 130%. If that's not insane, what is?

The chart does not reflect the lehigh valley it's a national chart. I am not going to educate you anymore because you're a lost cause. Keep getting your wisdom from what you read in the morning call. Since realtors are the main source for 99% of the articles concerning housing, it must be true.

[mczabe]

And it had been such a lovely, pleasant January...