Readers suggested a topic on areas immune from the housing bubble. "Let’s discuss and prove/debunk 'bubble-proof' areas. My hometown of Rochester, NY, for example, never historically appreciated more than 4% since the 80’s. The local news media has been saying Rochester is undervalued, prices will go up, and the bubble isn’t happening in there. It is different in Rochester!!"

"My dad bought a 4/2.5/2 in the burbs in 1982 for $180k and sold it in 2004 for $220k. His appreciation was easily absorbed by maintenance and inflation. My friend bought a 3/1.5 off Park Ave. in 2004 for $150k. The previous owner paid $89 in 1999. A house a few doors down just sold for $125k. No bubble, eh?"

"I hate to say it, because I am a firm bubble-believer: I think parts of NYC are more or less bubble-proof (or I should say crash-resistant). I’m saying let’s look at the arguments for 'bubble-proof' areas (NYC, SF) and areas where the bubble 'never happened' (Buffalo, Lawrence, KS and so on). I think that would give us all a historical perspective to help us understand - and make better choices - about buying in the future."

A reply, "Maybe with the sidebar topic about how NYC’s allegedly 'bubble proof' status is bolstered by RE industry hedging and hiding of data, and how, since RE advertising is geared to the very rich, the press tends to adopt that skewed view that everything is ok (while foreclosures pile up rapidly in many boro neighborhoods)."

"The ratio of income/house prices here is one of the worst in the nation. I wouldn’t buy here (yet) unless I was prepared to see my home’s value decline by 20-30 percent or more over the next few years."

"The Real Estate industry here is extremely powerful, and will use every means to persuade buyers that the party can’t end here, even as credit is getting tighter and boro prices are falling. You have to listen closely, but if you do, you can hear the slow hissing noise in NYC."

Another said, "I can wait for the Toll bros. High rise condoze in Union Square to fail miserably. Agreed its a pretty good location, but I understand it has no parking…..none not even for guests."

One pointed out, "You probably can’t afford to buy in the Village. Therefore, NYC does need a correction along with every other square inch of this country. I will agree that some people (myself excluded) would pay more to live in NYC than anywhere else, but that still does not make it bubble-proof."

Another reply to the original poster, "I’d consider rolling back to 2000 prices a crash. We’re basically on the same page, you just frame it more positively because you really like NYC - and that’s ok."

Finally, "What’s different about NYC now vs. before the boom??? NOTHING fundamental that will justify the price increase. Therefore, if it wasn’t worth it before, it certainly won’t be worth it after."

The Democrat & Chronicle from New York. "House sales in the Monroe County region fell by 9.5 percent in June compared with a year ago. There were 1,220 house sale closings last month, compared with 1,348 during June of last year. The median price edged up 3.6 percent to $121,250, compared with $117,000 during June 2006, according to the Greater Rochester Association of Realtors."

"'We've lost one part of the market, that's the credit risk buyers,' said Armand D'Alfonso, president of Nothnagle Realtors. With banks unwilling to take risks on that market, 'prices are bound to go up,' D'Alfonso said."

"The subprime mortgage market now is virtually nonexistent, said Joseph Rinaudo, broker owner of ReMax Gold in Rochester. 'To get 100 percent financing right now is impossible without good credit,' Rinaudo said."

"While certain portions of the market are faring well, the Rochester real estate market has shifted to favor buyers, said Michael Haymes, president of ReMax Realty Group in Pittsford. 'Buyers have many more choice than they did a year ago,' Haymes said."

The Canarsie Digest from New York. "An extremely high rate of foreclosures in Canarsie mirrors a high rate of subprime mortgages in the neighborhood."

"In Brooklyn, a total of 2,514 foreclosure actions were filed in 2004, rising to 2,557 in 2005 and then to 3,307 in 2006. The problem is not unique to New York."

From Newsday. "Bankruptcy trustee Marc A. Pergament is seeking 32 subpoenas of investors, bankers and mortgage companies involved with Hicksville real estate agent Nayana Shah over property deals they made on Long Island."

"In a story last month, Newsday detailed how five men reported making real estate deals with Shah that ultimately went bad, leaving them with ruined credit, extensive debt or homes in foreclosure. The men documented racking up $3.1 million in mortgage loans."

"Pergament said the Shah case exemplifies the current problems in mortgage lending. 'This is going to keep happening, and I don't know how to stop it ... ,' he said. 'But the more we can prosecute civilly, it has to have an impact eventually.'"

"Pergament's subpoenas included more than 15 mortgage bankers and brokers. 'We're also looking at whether these people submitted false financial applications to get these loans, who persuaded them to do that and why the banks just accepted it,' he said."

"Rajnikant Sanghvi said he wants the investigations' conclusions to stop the foreclosure on the Hicksville house he bought through Shah, taking out two mortgages worth $430,000. 'I don't know when they are going to finish the investigations, and in the meantime, I am still losing sleep,' Sanghvi said."