May, 2021   Blog Home   Contact

John McClintock Team

Americans' Sky-high Savings
to Make Spring Market Even Hotter

Many American households are feeling richer, sitting on the nest egg they've built during the pandemic. Those savings may be released into the economy in new spending this spring and summer, which will bode well for the already surging housing market.

Personal savings increased to a 21% annual rate in the first quarter of this year, reaching the second-highest level on record, according to the Bureau of Economic Analysis. Many Americans saved cash from the federal government's COVID-19 stimulus programs, and those who have remained employed have been able to save money after sheltering in for months, decreasing spending on gas, clothes, entertainment, and travel.

"Consumers have lots of cash available thanks to stimulus and extremely high savings and will be looking to spend, especially on services," Gus Faucher, chief economist of PNC Financial Services, told MarketWatch. "Rising vaccination rates and a greater willingness to go out in public will also support consumer spending."

The reopening of the economy and federal stimulus funds led to a 6.4% annual GDP gain in the first quarter, the government reported this week. "The economic recovery now is quicker and stronger compared to the recovery [following the Great Recession] thanks to a quick and powerful dose of monetary expansion and strong fiscal spending that propped up consumer and residential investment spending," Gay Cororaton, research economist at the National Association of REALTORS®, writes for the association's Economists' Outlook blog. A strong housing market also likely will continue in 2021 with sustained economic growth, declining unemployment, and mortgage rates hovering at historic lows, Cororaton notes.

Consumer spending accounts for 70% of the economy. The National Association of Realtors® predicts GDP growth to reach 4.5% in 2021, mortgage rates to average 3.2%, and existing-home sales to increase 10% to 6.2 million units.

Source: National Association of Realtors, realtor.com.


Are you active in the market looking for a Bucks County home to buy or sell? More than ever, you need expert, professional representation. Before you list your home for sale, call The John McClintock Team at 267‑759‑9518 for no obligation recommendations on pricing and an overview of our comprehensive marketing package that includes, home staging, brokers' open house, virtual tour, video tour and social media sharing.


john mcclintock team

Information is deemed reliable but not guaranteed.