The desire to buy a home is beggining to manifest its self in savings levels. The public at large this past year (2008) started getting the message that home financing as it was is a thing of the past. Americans are saving more than they have in a long time. The personal savings rate rose to 3.6 percent in December and averaged 1.7 percent for the whole year. This contrasts with 07 which was three times lower and way above 04 a seven decade low of .4 percent. While some of the incentive to save was spurred by the uncertainty of keeping their jobs, many survey respondents indicated that they are willing to start living frugally to achieve the 20 to 25 percent down payment money they know they will have to have. Many aspiring home buyers willing to forgo some luxuries to achieve their home buying goals may find their savings accelerated by the Federal Government if the new stimulus bill gets into law with the $15,000.00 tax credit.
Just thought I would share some positive news with my fellow realtors amidst all the doom and gloom.
Have a terrific day
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