The news came out today to say how great new housing sales were. Which I yawned about because people in existing homes are locked into low low rates. They aren't going to move unless they have to. Why would they? New home sales are about the only market that exists. Of course this number is only going to look good for years to come.
Half of the listings in my city are new construction. And here is the crazy part - the oldest house on the market has been there for only 13 days. Up from 11 days last week. This would make you think the Fed should raise rates immediately. The snap back in housing when this economy gets going to going to be intense.
If you go over to the rental market - EEEEEKS! I got my rental filled two months ago and since then, that market has fallen off a cliff. A year ago you could rent a place in two weeks flat. It took me 30 days to rent my place this time which is how I noticed the market was changing. Now, it isn't uncommon to see places sitting for 80+ days. If I were to have to put my place on the market now I wouldn't expect it to rent before 45 days.
I'm not sure if some of those renters have become owners. If they were smart they should be, but right now it's just too hard to tell.
The other interesting thing is because so few houses are on the market, a lot of people are becoming property managers. When places were renting in two weeks, any idiot could rent a place. It will be interesting to see how this pans out as the competition becomes stiff.