It doesn’t matter what business you’re in, Halloween marks the beginning of a new season every year I like to call “Deal Time!” In order to close most transactions, from start-to-finish, often require 45-60 days. Mortgages and real estate purchases certainly require 45-60 days. The ‘year end’ is how most employee, shareholder, and corporate bonuses are figured. If you tie up a good ‘year end’ all the sins of the past 3 quarters can be forgiven and the Holiday parties are still fun.
Without a good ‘year end’ of deal making, the Holiday parties are more like a wake.
It’s time, hunting season is open, and the deals are priced right. Interest rates are as low as they were in 2003 and there’s liquid money sloshing around in the banking system.
We noticed a trend that began last ski season, there were a lot of white collar execs who were ‘down sized’, started their own consulting practices and spent more time on the slopes or golf course in 2009 than in the past decade. People suddenly had time to live life and enjoy. I noticed more empty parking spaces at the mall and office parks this summer. But a couple weeks ago, I could get a table at lunch (in 2 restaurants) on a Tuesday. The coffee shop was full this morning. People looked business. There were discussions of ‘deals’ and ‘upcoming closings’.
My wife and I went open housing this weekend, the driveways were full, we had to park down the street at several houses. Could people be out looking to buy? Mortgage lenders will tell you, pre-approval applications are at all time highs. People are getting ready to ‘deal’.
There is momentum and the season is upon us. Congress should pass broader tax incentives for home buyers to stoke the flames. If they do, the Holidays parties might be worth attending in 2009.
It time to tie up a good year, cheers!
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