I just read an interesting newsletter from a mortgage broker on the statistics surrounding the unemployment rate. Predicted to be at 9.9%, the rate took a surprise turn at 10.2%. The newsletter pointed out that 190,000 jobs were lost and that it takes the creation of 125,000 new jobs per month to maintain the unemployment rate where it is from month to month.
Psychologically, this cannot be good for the average person thinking, "Hey, I need to put it all on the line and buy a new home." I can understand the torment, buyers, especially first time home buyers, must be feeling in regard to "should we or shouldn't we." God forbid that you go out and buy a new homeonly to be laid off six months later with a 12 week severance package (about the average according to the Washington Post this morning). In that case you wouldn't have saved much on a new home. We are just so blessed to have gotten the extension on the home buyer credit. Without that I fear it would be a long cold Winter this year.
There is business out there and there are investors and others with money to invest in, or to purchase, a new home. It is getting tougher and more cut throat in regard to getting quality listings and pre-approved buyers. Those buyers that do meet the current hurdles have a great opportunity to save a ton of money on what is probably the largest investment they will make in their lifetime.
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