Over the next five years, the housing market will see around 1.5 million eligible return buyers jump back into home ownership, the Associated Press reported. These return buyers, nicknamed ‘boomerang buyers,’ lost their homes during the housing crisis, and they’ve restored their credit and are ready to purchase again!
Since 2006, 950,000 of these former owners have already purchased a home, and boomerang buyers will continue to be an important market for real estate professionals to target. Though the credit crisis hit hard, the past years of time, have helped restore the credit many lacked.
“Now fueled by a gradually improving economy and the strong rebound in home prices, credit scores, and jobs, some of these former distressed owners have returned to the market, and more will likely become eligible in coming years,” says Lawrence Yun, chief economist with the National Association of Realtors (NAR).
A recent study from NAR showed the states that will be most impacted by return buyers are California, Florida and Arizona.
One of these return buyers, Debbie Cooley-Guy, in an interview with the Associated Press, said this of her housing journey. “I used to look at people like me and think, ‘How did you let this happen?’ In hindsight, I had set myself up so well. Just because you can afford things, it doesn’t mean you should buy them.”
But her story is one with a happy ending. After agreeing to a short sale, getting rid of her debt, repairing her credit, and saving up money, Cooley-Guy got an FHA loan and re-entered the housing market. Many stories like this abound. Don’t think that you are ineligible until you consult with your mortgage Team. New options are available for many people.
Cooley-Guy’s story will become more common, as many of the 7.3 million homeowners who went through foreclosure, or short sale, or even bankruptcy, would now (or soon) be eligible to re-enter the mortgage world.
(via The Associated Press)