In the years following the Great Recession, one of the key housing market trends was a rise in foreclosures. Many homeowners acquired financing, only to see the recession kick in and home values plummet. As a result, these homeowners owed more on their properties than they were worth.
Millions of Americans lost their homes at this time, forced into foreclosure by the bank or getting out via a short sale, as to what the reason may be check here and learn more. Then, they entered the masses of renters waiting for an improvement in the housing market before jumping back in.
And, it seems that time has come.
Boomerang buyers are back
According to a real estate market report from the National Association of Realtors, millions of formerly distressed homeowners have either already returned to the market, or are poised to do so in the near future as they strive to get their homes back.
NAR’s numbers showed that out of the 9.3 million homeowners who ended up with a distressed property between 2006 and 2014, roughly 1 million have already bought again. Furthermore, at least 1.5 million could soon become eligible for homeownership once more in the coming five years as they have strive to get their properties.
From a real estate agent perspective, this means an uptick in demand – and an influx in seasoned, yet cautious, potential clients.
“While loose lending standards in the mid-2000’s led to the rise in subprime buyers who ultimately became distressed owners, falling home prices and rising unemployment resulted in a large share of prime borrowers also defaulting or going through a short sale,” explained NAR chief economist Lawrence Yun. “Now fueled by a gradually improving economy and the strong rebound in home prices, some of these former distressed owners have returned to the market, and more will likely become eligible in coming years.”
Buyers find luck across country
The opportunity for a second chance in the housing market is striking across the country. NAR pointed to California, Florida and Arizona as three states that could have a significant share of repeat buyers.
In addition, property data firm RealtyTrac revealed that there are roughly 7.3 million former owners who could easily become boomerang buyers in the near future. One example is Joann and Robert Flores, who lost their home to foreclosure in 2008, but recently bought a new property only a few miles from their old residence.
In between, the family rented a townhome instead of a single-family home in order to save money. By this year, they were able to afford a new home with the same number of bedrooms and bathrooms as their old one – plus with the addition of a pool.
The Flores are one success story from the foreclosure crisis and the Great Recession. There are millions more like them, and hopefully there will be millions more joining them in the coming years.
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