Sunday, September 20, 2009

It's great time to buy a home if you can wait until 2030

I'll preface this by saying that Moody's rating service failed to see the housing collapse and continued to rate many bonds AAA well into 2007-08 as the financial world was imploding. However, their latest call on housing is worth reading especially considering how far and fast home prices have fallen in recent years.

Look at some of those data points. Moody's estimates it will be more than 14 years before housing recovers in AZ, NV, CA, FL, MI, etc. Even historically strong economies like NY, NJ, IL, and GA are not predicted to recover for a decade. From the Moody's piece...

Yet Moody's predicted home prices "will remain at a persistently lower level than we anticipated prior to the crisis, and it will take a full decade from the 2010 bottom just for the [Case-Shiller] national index to climb back to its 2006 peak."

On a regional basis, Moody's said hard-hit states such as Florida and California 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.

Finally, a small note of thanks to a Garth and his wonderful family at the Wolfe Island Corn Maze. I was in the midst of a fantastic two nation bike tour from Clayton to Kingston and back when my supposedly high-end tubular tire failed AGAIN. This left me with few choices but to walk across Wolfe Island. Many Canadians stopped to offer help but my tire was beyond repair. Finally, I crossed paths with a fellow biker that offered to give me a lift to the ferry. Thank you and I'll be sure to pay it forward!


1 comment:

Anonymous said...

I fully understand understand your experience on Wolfe Island. My wife and I took the same bike trip last Friday leaving from Cape Vincent via Horne's Ferry. I forgot my pump in the car. Luckily either of us had a flat during the trip. I haven't used tubulars since I started ridding a hybrid bike many years ago. But I did have spare tubes with me.

Had to stop at the Marysville Bakery!