tag:blogger.com,1999:blog-13164186.post5825986894686290472..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: America's Most and Least Affordable CitiesDavidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-13164186.post-27935013377421972342008-08-23T23:32:00.000-04:002008-08-23T23:32:00.000-04:00I live in Indy and have an opinion on the question...I live in Indy and have an opinion on the question about how come a city with the most affordable housing also has a high foreclosure rate.<BR/><BR/>It is not uncommon for houses in decent suburban areas to appreciate 2% a year. Two percent over 20 years, like one house I had built back in the 80's, doesn't lead to high prices.<BR/><BR/>Prices here are low for multiple reasons:<BR/><BR/>a) no shortage of flat land to build on !<BR/>b) few zoning/planning barriers to construction<BR/>c) fairly low construction wages (vs a Seattle or a NYC)<BR/>d) economy has been bleeding good middle class manufacturing jobs since the 70's - less money floating around to bid up prices.<BR/><BR/>The foreclosure rate is high because:<BR/><BR/>a) This is a Realtor town - MLS is a closed system, it's very difficult to get sold prices to make comparisons<BR/>b) Crooks run wild - real estate agents, appraisers, flippers, there is no enforcement of any kind<BR/>c) No shortage of poor uneducated people to take advantage ofAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-61117686330356403072008-08-21T17:22:00.000-04:002008-08-21T17:22:00.000-04:00I've had it explained to me that in areas with rap...I've had it explained to me that in areas with rapid appreciation, people do all they can to hold on to their homes. On the other hand, in places with less appreciation, there's less incentive to try to hang on to the house for the "bundle of money" they expect to make. Cheaper homes = psychologically easier to walk away from.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-10424140281730685982008-08-20T09:34:00.000-04:002008-08-20T09:34:00.000-04:00James - I'm not sure what point you are trying to ...James - I'm not sure what point you are trying to make. Does that foreclosure rate seem high for such an affordable area?<BR/><BR/>If so, the other factor that could be at play was flipping. We know flippers invaded low cost areas moreso than high cost areas. Perhaps there was a lot of flipping in Indianapolis, and now that the market has gone sour, they have sent in their "jingle mail".<BR/><BR/>Just a thought.The Anonymoushttps://www.blogger.com/profile/09233501721660697800noreply@blogger.comtag:blogger.com,1999:blog-13164186.post-84608638566009187072008-08-20T09:32:00.000-04:002008-08-20T09:32:00.000-04:00This comment has been removed by the author.The Anonymoushttps://www.blogger.com/profile/09233501721660697800noreply@blogger.com