First of all, our area ( Greater Binghamton) has one of the most affordable housing prices in the nation. If you compare what your getting for your dollar compared to other areas, it can't be beat! Our area's housing prices did not keep pace with the rest of the country's rapid appreciation in prices. Creative financing helped the housing boom, people getting into interest only or adjustable rate mortgages which provided fuel for the market and also drove prices higher. Lenders in the binghamton and surrounding areas are not known for doing subprime lending or doing creative financing. Housing stayed steady, there was no boom in our area like the rest of the nation and as a result we didn't experience a bust either.
Bascially Binghamton prices did not keep up with the rest of nation's rapidly appreciating homes. We didn't have a large subprime market in our area, and most factors remained steady. Prices in this area have started to come up to where they should have been during the last couple of years. IN the last 3 years, homes have appreciated on average 25%. I don't think you'll continue to see such rapid appreciations in price, rather I think you'll start to see much smaller gains in prices. I think what we were seeing was a market adjustment/correction.
One small contributing factor could be that Lockheed Martin Intregration Systems in Owego, NY recently secured a government contract which created many high paying engineering jobs bringing people to the area from out of town and also bringing jobs to the area for locals.
Binghamton is unique in it's housing because you have a extremely diverse housing market. You have your upscale housing subdivisions , your nice neighborhoods, your not soo great ones, your trailer parks, small homes, large ones, etc. Everyone can basically find a home to suit their needs.