Credit crunch killing sales

In the rising market of the past few years, buying a home with little or no money down became the norm. With today’s declining home values and the overall tightening of credit, however, lenders are again looking for an equity cushion in home purchases.

They now want buyers to contribute cash towards the purchase price, cash that few potential buyers have.

Real estate brokers in the Greater Lowell area tell me that more and more home sales are dying even after the purchase and sale agreement has been signed because of this credit crunch.

This may be one of the consequences of the steady decline in personal savings rates – in 21st Century America, if you can’t borrow, you can’t buy.