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August 28, 2015

Boomerang Buyers

Today, we’re going to talk about boomerang buyers and how they affect the real estate market both locally and nationally. A boomerang buyer is someone who lost their home in a foreclosure or short sale in the housing crash, and need time to improve their credit in order to purchase another home. Now that their credit is back in shape, it’s really affecting the market.

Starting in 2006, over 7 million homeowners went through short sales or foreclosures. In 2015, 350,000 homes were sold to return buyers. According to the National Association of Realtors, up to 1 million consumers have restored their credit, and 2.2 million consumers are expected to restore their credit in the next five years. That means that there will be up to 2.2 million buyers coming back into the market over the next five years.

In spite of going through a foreclosure, nearly all of these consumers say they want to buy a home again. They see the value of owning a home; after all, if you’re going to pay a mortgage, it might as well be your own.

Ultimately, the boomerang effect has given us a very strong market right now. If you have questions about this video, or about your home value, please give me a call or send me an email. I’d be happy to help you!

Boomerang Buyers