"An Election Year"
There is an old saying in the sales world that there are two things you don't talk about at a cocktail party (you can now through in, "or post on Facebook") and that is Religion or Politics. However when a political event might have an impact on our business it is worth following. In regards to the macro economy big business has been sitting on piles of cash for sometime waiting to see the outcome of the election. Usually in a recovery the money would be flowing into research and development, mergers and acquisitions... This years election has so much riding on it for big business that they simply are taking a wait and see attitude which combined with gridlock in the government has stalled the recovery. What does this mean for housing? To be honest I am not sure and we need to keep an eye on it. In the micro economy people tend to get a little nervous with their wallet as the election approaches. Uncertainty can kill any rally. We had a good winter, a great spring and we are having a good summer but will it have legs through the fall and the election? Low interest rates, low inventory and pent up demand are all in our favor so the odds are good. But... and what I am suggesting is let's store a couple of nuts just in case we have a little pull back this fall. Either way, I really believe that after the election when people realize that their world is not coming to an end because their candidate did not when we are off to the races with a long sustained recovery in housing.
Enjoy the coffee,