People who get government stimulus funds can achieve their ambition of purchasing their first house. According to a recent analysis from Redfin, roughly one in every four first-time homebuyers is making use of federal stimulus funds to assist them in saving for a down payment.
The information comes from a poll of 1,500 inhabitants of the United States conducted in December. When asked whether they expected to purchase their first house within the next year, 215 respondents stated they had saved stimulus money toward a down payment.
In addition to being the most conventional source of down payment funds, 52 percent of respondents stated they saved money straight from their wages.
The other 24 percent said they could save more money during the epidemic. The remainder stated that their down payment was partially funded by working a second job (22 percent) or utilizing an inheritance (17 percent ).
Some even claimed that the cryptocurrency markets provided them with a financial boost: 12 percent of respondents said that the earnings from the sale of bitcoin assets assisted them in making down payments.
Stimulus checks assisted in increasing Americans’ savings.
The survey’s author, Redfin Chief Economist Daryl Fairweather, said that despite the economic turbulence experienced in the early days of the epidemic, “a large number of Americans, especially those who are in a position to purchase a house, are now in a better financial situation than they were before.”
This is large because “stimulus payments gave a lot of Americans not only with much-needed relief but also with more money in their wallets,” she said.
Since the onset of the coronavirus epidemic, the federal government has authorized three consecutive rounds of stimulus payments in sums ranging from up to $1,200, $600, and $1,400, depending on the severity of the situation. Parental assistance funds were also sent to parents in advance payments of a greatly enhanced child tax credit.
Experts generally agree that the emergency funds provided by the government assisted in keeping many American households afloat during the worst of the economic downturn.
One study from the University of Michigan discovered that financial instability, as measured by the share of adults with children in U.S. Census data who reported that it had been extremely difficult to pay for household expenses in the previous week, decreased by 43 percent between December 2020 and April 2021, according to the study.
According to the Peter G. Peterson Foundation research, although most Americans spent their first round of payments on necessities such as food and rent, families were more inclined to preserve a part of their following rounds.
Certain analysts have suggested that all of the government stimulus money has also contributed to inflation, which has risen by 7 percent on an annual basis and has helped push up the costs of everything from groceries to gasoline and rents and property prices, among others other things.