Today in our Market Updates series we will be talking about boomerang buyers and what their recovery means for the housing market.
As seen in the infographic above provided by our friends at KCM, a boomerang buyer is defined as a former homeowner who has gone through a "short sale," "foreclosure," or "bankruptcy" in the past few years and has been saving for a downpayment in preparation of the expiration of the waiting period, in order to qualify once again for a mortgage.
Between 2006 and 2014 over 7 million homeowners went through a short sale or foreclosure. However, in 2014 about 350,000 homes were sold to return buyers. According to the National Association of Realtors up to 1 million consumers have already restores their credit since the housing market crash. 2.2 million consumers will meet mortgage requirements in the next 5 years. The State of Nation's Housing says, "Many borrowers who lost their homes to foreclosure have had that blemish wiped from their credit reports, making them again eligable for FHA and other mortgages. This could provide a tailwind for the market."
As millions return to the housing market everyday and continue to recover from foreclosures and other setbacks, we can only conclude that the american dream is still alive and well! There is no better time to get into the housing market than today!
photo cred [KCM: KeepingCurrentMatters.com]