Not that Moody's was very accurate in assessing and assigning risk ratings to RMBS, but, if you live in Florida and were thinking of "holding on until prices come back" you'd better have a lot of stamina according to Moody's recent projections!
If you have reason or a desire to sell, now or in the near future, you may want to sell sooner rather than later. However, if you're planning to live in your home until the kids are married and on their own, you may be able to weather the storm. Below is the bulk of the original article.
By John Spence, MarketWatch
BOSTON (MarketWatch) -- Moody's Investors Service threw cold water on optimistic projections of a V-shaped recovery in the battered U.S. housing market, predicting it could take more than 10 years to get back to boom-level prices.
"For many reasons, the rebound will be disproportionately small compared to the decline," Moody's said this week in its latest outlook on the residential market. "It will take more than a decade to completely recover from the 40% peak-to-trough decline in national home prices." ...
"The scars that this downturn will leave on the economy and the housing market will be long lasting and persist in nearly all facets of the housing industry, including the demand for homes, ownership patterns, homebuilding, and house price appreciation," the analysts forecast.
"It will take more than a decade for many measures of housing activity to regain ground that has been lost as a result of the correction: The intense downturn will overcorrect for the excesses in the housing market generated by the boom years," they added...
On a regional basis, Moody's said hard-hit states such as California and Florida will be among the last to recover and "will only regain their pre-bust peak in the early 2030s, well after the nation does." Meanwhile, a decimated Wall Street will weigh on New York's recovery, although the state's overall price decline will be less severe...
John Spence is a reporter for MarketWatch in Boston
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