Wednesday, November 30, 2016
Put your big girl panties on. This is ugly.
The chart for mortgage applications since Sept. Clearly that looks healthy. Said in the most sarcastic way. I've talked about the sluggishness in rentals over the past few months. Over that same time the oldest time on market for people selling has gone from 3ish weeks, to 45 days. Even I'm not sure what is going to happen now. I'm guessing sales will look like shit for a very long time.
Note - this is not another bubble popping. That was an invention made up by the media. Are things sluggish? Yes. But you will never get people to give up their houses in the same way they did during the recession. Even people who could have afforded their houses gave them up out of pure greed. The media convinced them their houses would never be worth what they paid for them. They jettisoned those houses so quick it made your head spin. I knew a few of those people.
If I had to guess - those recent potential buyers will turn back into renters. The market is so dysfunctional. It's hard for me even to wrap my mind around how this plays out now.