Region sees second straight year of d...

Region sees second straight year of declining home prices. Bott...

There are 106 comments on the The Morning Call story from Jan 13, 2009, titled Region sees second straight year of declining home prices. Bott.... In it, The Morning Call reports that:

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whatever

Emmaus, PA

#1 Jan 13, 2009
Did anyone notice how their home owners ins. went up over the years? I called our ins. co and was told it's going to cost more to build your home today than it did 5 years ago because builders are getting more money for real estate. I doubt my ins. bill will go down now that the cost of real estate has. Everyone always finds a reason to increase their prices but rarely decrease them. The banks should be offering 4% fixed 30 year mortgages. People were getting 6% on 30 year fixed when the economy was good. If you went to get a 30 year fixed you probably couldn't get less than 5.75%. There is no reason banks couldn't offer 4% on a 30 year fixed mortgage, other than greed. Greed is the whole reason this country fell apart. The greedy politicians raising taxes on large companies, the large companies getting greedy and sending their mfg. jobs over seas, the unions wanting outrageous pay for their workers, the banks, and the list goes on and on. Greed has destroyed this country and the bail outs wont work. The only thing that can save this country is to restore faith in the American consumer / tax payer. The bail outs are not restoring faith and confidence, they are doing just the opposite. Stop the bailouts, retract the money promised (it can be done), let companies fail so then can restructure, send all the retracted bail out money to the consumer, then things would start to turn around.
Resident

Allentown, PA

#2 Jan 13, 2009
This is good news for those of us looking to buy and bad news for those of us looking to sell.
Amused Crack-er

Bethlehem, PA

#3 Jan 13, 2009
All this talk of house prices plummeting, when in actuality, they are merely returning to their proper value as compared to local wages. Housing prices were grossly escalated due to the "transplants" who work "elsewhere" but live here. THEY drove up the prices, and since they are pretty much not buying houses up, the prices are merely returning to what the local market should be.

It's nothing bad at all. It's just going back to what locals who live AND work here can afford.
gretty

Easton, PA

#4 Jan 13, 2009
Resident wrote:
This is good news for those of us looking to buy and bad news for those of us looking to sell.
That's me. Good and bad. Gotta sell since my husband passed away and I can no longer afford the home. I will lose money on it but I should get a good deal when I buy then.
Jacobson

Plymouth Meeting, PA

#5 Jan 13, 2009
Whatever, I couldn't agree with you more than what you have already said. I agree 100%. Greed is definitely the bottom line in everything in this country and no matter who the president may be, it will not change despite all the false promises that have already been made. It is the American people and the big CEO's who are to blame since we have become a very ungrateful nation and are never satisfied.
yeh right

Allentown, PA

#6 Jan 13, 2009
i will tell you that the costs for insurance are also due to natural disasters across the country as they are shared across the board which is fair.

another factor or cost is that cost is not value. this is a concept people do not understand. or maybe they don;t want to.
yeh right

Allentown, PA

#7 Jan 13, 2009
Amused Crack-er wrote:
All this talk of house prices plummeting, when in actuality, they are merely returning to their proper value as compared to local wages. Housing prices were grossly escalated due to the "transplants" who work "elsewhere" but live here. THEY drove up the prices, and since they are pretty much not buying houses up, the prices are merely returning to what the local market should be.
It's nothing bad at all. It's just going back to what locals who live AND work here can afford.
you are correct as the last boom in the late 80's was ALSO due to the influx of NJ and NY. it took almost ten years to get back to base zero for values after they dropped. this time with our taxes getting high, it will not happen again. for what that is worth
comment

Seoul, Korea

#8 Jan 13, 2009
whatever wrote:
Did anyone notice how their home owners ins. went up over the years? I called our ins. co and was told it's going to cost more to build your home today than it did 5 years ago because builders are getting more money for real estate. I doubt my ins. bill will go down now that the cost of real estate has. Everyone always finds a reason to increase their prices but rarely decrease them. The banks should be offering 4% fixed 30 year mortgages. People were getting 6% on 30 year fixed when the economy was good. If you went to get a 30 year fixed you probably couldn't get less than 5.75%. There is no reason banks couldn't offer 4% on a 30 year fixed mortgage, other than greed. Greed is the whole reason this country fell apart. The greedy politicians raising taxes on large companies, the large companies getting greedy and sending their mfg. jobs over seas, the unions wanting outrageous pay for their workers, the banks, and the list goes on and on. Greed has destroyed this country and the bail outs wont work. The only thing that can save this country is to restore faith in the American consumer / tax payer. The bail outs are not restoring faith and confidence, they are doing just the opposite. Stop the bailouts, retract the money promised (it can be done), let companies fail so then can restructure, send all the retracted bail out money to the consumer, then things would start to turn around.
Well, ladies and gentlemen, we're not here to indulge in fantasy, but in political and economic reality. America, America has become a second-rate power. Its trade deficit and its fiscal deficit are at nightmare proportions. Now, in the days of the free market, when our country was a top industrial power, there was accountability to the stockholder. The Carnegies, the Mellons,(or Trexlers, Packers, Schwabs, Fricks) the men that built this great industrial empire, made sure of it because it was their money at stake. Today, management has no stake in the company!

All together, these men sitting up here (management) own less than 3 percent of the company. And where does Mr. CEO put his million-dollar salary? Not in his stock; he owns less than 1 percent.

You own the company. That's right -- you, the stockholder.(Mr. & Mrs. Joe Public)

And you are all being royally screwed over by these, these bureaucrats, with their steak lunches, their hunting and fishing trips, their corporate jets and golden parachutes.

Mr. CEO has 33 different vice presidents, each earning over $200 thousand dollars a year. Now, I have spent the last two months analyzing what all these guys do, and I still can't figure it out. One thing I do know is that our companies lost 13.1 trillion dollars last year, and I'll bet that half of that was spent in all the paperwork going back and forth between all these vice presidents.

The new law of evolution in corporate America seems to be survival of the unfittest. Well, in my book you either DO IT RIGHT or you get ELIMINATED.

In the last seven deals that I've been involved with, there were 2.5 million stockholders who have made a pretax profit of 12 billion dollars. Thank you.

I am not a destroyer of companies. I am a liberator of them!

The point is, ladies and gentleman, that GREED -- for lack of a better word -- IS GOOD!

GREED IS RIGHT!

GREED WORKS!

GREED CLARIFIES, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms -- GREED FOR LIFE, for LOVE, KNOWLEDGE -- has marked the upward surge of mankind.

And greed -- you mark my words -- will not only save the WORLD, but that other malfunctioning corporation called the USA.

Thank you very much.

-Gordon Gekko circa 1987--
Matt_PSU

Weatherly, PA

#9 Jan 13, 2009
The prices here in the valley should continue to drop. Look on the MLS- you see the same houses at the same rates they've been for the last 6 months. People just don't seem to get that there was a correction.

The bottom line is that prices have to get in line with the wage scale in the valley (and not in line with the wage scale of north Jersey!). This still hasn't happened. I'm tired of listening to real estate agents trying to spin this positively. Prices still are not where they need to be, nationally or in the valley. Wait until 10% of the financial sector finds themselves unemployed. That will trickle down to the valley for sure. Orders are way down, across the board. As a transportation hub, the valley will feel that one too.

Being a new buyer looking to get in the market, I am glad this correction is finally under way.
traveler

Bethlehem, PA

#10 Jan 13, 2009
Plummet? LOL! 2.6% from peak is nothing. Look at Vegas and see what plummet is.
traveler

Bethlehem, PA

#11 Jan 13, 2009
yeh right wrote:
across the country as they are shared across the board which is fair.
It's fair that I subsidise fools who build in coastal areas, flood and hurricane zones?
One Who Knows

Bethlehem, PA

#12 Jan 13, 2009
whatever wrote:
Did anyone notice how their home owners ins. went up over the years? I called our ins. co and was told it's going to cost more to build your home today than it did 5 years ago because builders are getting more money for real estate. I doubt my ins. bill will go down now that the cost of real estate has. Everyone always finds a reason to increase their prices but rarely decrease them. The banks should be offering 4% fixed 30 year mortgages. People were getting 6% on 30 year fixed when the economy was good. If you went to get a 30 year fixed you probably couldn't get less than 5.75%. There is no reason banks couldn't offer 4% on a 30 year fixed mortgage, other than greed. Greed is the whole reason this country fell apart. The greedy politicians raising taxes on large companies, the large companies getting greedy and sending their mfg. jobs over seas, the unions wanting outrageous pay for their workers, the banks, and the list goes on and on. Greed has destroyed this country and the bail outs wont work. The only thing that can save this country is to restore faith in the American consumer / tax payer. The bail outs are not restoring faith and confidence, they are doing just the opposite. Stop the bailouts, retract the money promised (it can be done), let companies fail so then can restructure, send all the retracted bail out money to the consumer, then things would start to turn around.
Actually, there is a reason why banks can't give you a 30 year loan at 4%. Would you be willing to take out a 30 year CD at 3.5%? Of course not! You require more for long-term rates.

THere is a reason why 30 year mortgage rates don't move as quickly as short-term rates. Over the cycles of the next 30 years, you will have boom and bust. Short-term rates reflect the current supply and demand for cash.

Banks don't print the money they lend. To simplify it a bit, they borrow it. They borrow from you, the depositor. They borrow from the Federal Reserve. While you might give them your money short term for 1% or 2%, they have to pay much more for 30 year money.

When the economy is bad, short term raters tend to fall below long term rates. At times, when it really heats up, the yield curve will invert and long term rates may be lower.

But, look at what the government charges for long term money and what it will pay on longer term bonds. That is what ultimately drives the 30 year rate. Right now, short term debt is relatively cheap but this current hiccup isn't enough to drive 30 year money that low.
Mack

United States

#13 Jan 13, 2009
I agree. I live in the Southern Lehigh school district and prices have not dropped, in fact they went up again in 2008 according to sales data reported to the county. In my neighborhood I see that they are taking longer to sell, but they're still selling and at prices close to the peak. Just goes to show that you really have to look at individual neighborhood trends, not national or state or even region.
traveler wrote:
Plummet? LOL! 2.6% from peak is nothing. Look at Vegas and see what plummet is.
Riverratbond

Bethlehem, PA

#14 Jan 13, 2009
traveler wrote:
Plummet? LOL! 2.6% from peak is nothing. Look at Vegas and see what plummet is.
You are correct, But this leftist rag called the Morning Call gets nothing but joy in heralding bad news on its front page every morning. When will their subscribers wake up & cancel this worthless rag. They have been pounding on this same story for 5 years now, even though we've had the biggest real estate boom in the history of our great country. Yes, things are settling back, however, I am still buying investment properties, the BEST investment is still real estate. When the tree huggers complain that trees are being wasted, this poor example of a news paper should be a good start...put it out of its misery!
traveler

Bethlehem, PA

#15 Jan 13, 2009
They also don't report that prices were flat through the entire 90s so the run up was partly a correction as well. Plus the high prices were skewed by upper end homes in the outlying areas.
HtwoO

United States

#16 Jan 13, 2009
whatever wrote:
Did anyone notice how their home owners ins. went up over the years? I called our ins. co and was told it's going to cost more to build your home today than it did 5 years ago because builders are getting more money for real estate. I doubt my ins. bill will go down now that the cost of real estate has. Everyone always finds a reason to increase their prices but rarely decrease them. The banks should be offering 4% fixed 30 year mortgages. People were getting 6% on 30 year fixed when the economy was good. If you went to get a 30 year fixed you probably couldn't get less than 5.75%. There is no reason banks couldn't offer 4% on a 30 year fixed mortgage, other than greed. Greed is the whole reason this country fell apart. The greedy politicians raising taxes on large companies, the large companies getting greedy and sending their mfg. jobs over seas, the unions wanting outrageous pay for their workers, the banks, and the list goes on and on. Greed has destroyed this country and the bail outs wont work. The only thing that can save this country is to restore faith in the American consumer / tax payer. The bail outs are not restoring faith and confidence, they are doing just the opposite. Stop the bailouts, retract the money promised (it can be done), let companies fail so then can restructure, send all the retracted bail out money to the consumer, then things would start to turn around.
30 year rates are around 4.5% right now. Banks however, can't just arbitrarily choose what an interest rate is...it's based on several factors, primarily how much Mortgage Backed Securities are trading for.
joe poli

AOL

#17 Jan 13, 2009
Homes in premium areas, those with good schools, shopping, low crime, etc. are not going to drop much.

Keep in mind if the prices on premium houses continue to drop, more people will be attracted from New York and New Jersey because they can afford the higher prices compared to where they live now.

I hope prices are stable so locals can afford a house; but don't think you are going to buy a McMansion for 200 thousand dollars. There is always someone from the city who can afford the higher price.

By the way the local bus companies are doing a booming business. Bieber has buses on the hour leaving Wesosville for New York Daily. Sometimes they have two buses leaving at the same time with one stopping in Hellertown and the other going express all the way to NYC.

As a retiree, from New York, I pay $7000 a year in property tax, spend my pension money in the valley at restaurants, doctors, travel agencies, car dealers, super markets, etc. We contribute to the local economy in a big way. Think about it, please???
Delusional Agent

Bethlehem, PA

#18 Jan 13, 2009
Now is the best time to buy a home in recorded history. You will never get a better deal than right now. Call me.
Please!!!!!!!!!!
Fix It

Allentown, PA

#19 Jan 13, 2009
Like any of this matters anyway.

Once the global government takes over they will take over ownership of all your homes. We haven't been a capitalistic society for years, we are socialistic; but it was changed so slowly none of you noticed.

Up to the present society was kept fat and happy for a reason.

End Game is a documentary by Alex Jones and has parts loaded on You Tube. This is information leaked by those involved with the transformation, and the plans they have for YOUR money.

Since: Mar 07

AOL

#20 Jan 13, 2009
"And when the market finds bottom, prices are likely to stagnate for years before they begin moving upward"

So other home prices will be affordable but my home will never sell for what we owe......welcome to 2009! Nice, I'll be stuck in this state forever.

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