The number of homebuyers in the real estate market is about to increase as boomerang buyers prepare to re-enter the market.
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What are boomerang buyers and why are more of them entering the real estate market?
As a professional Realtor, I study home prices daily, as well as research studies that could impact our market so that our clients are two steps ahead of the marketplace.
A recent study by TransUnion, “The Bubble, the Burst, and Now—What Happened to the Consumer?” revealed that 1.5 million homeowners who were negatively impacted by the housing crises could re-enter the housing market between 2016 and 2019.
The interesting thing is that a good portion of buyers who have purchased a home over the last 12 months previously lost their mortgage through a short sale or have recovered from bankruptcy.
In fact, HousingWire recently analyzed data from the U.S. Bankruptcy Courts and found that six million Americans will have their bankruptcies removed from their credit reports in the next five years. According to HousingWire, this could “send a flood of more homebuyers into the housing market.”
If you look at the video, there’s a chart that shows the total number of bankruptcies filed in the United States over the last two years. Over 3.3 million people have already waited the seven years necessary to remove their bankruptcies from their credit reports.
So, how exactly will this send a number of boomerang buyers into the housing market?
Think of the time lapse alone. As the article mentioned, in 2010 the number of Chapter 7 bankruptcies increased to nearly 1.14 million. Seven years later, those bankruptcies will fade from credit histories, enabling prospective buyers to become homeowners again once their credit scores improve.
Both reports show that there is an opportunity for the homeownership rate to increase drastically over the next few years as all of these boomerang buyers return to the market.
If your family was negatively impacted by the housing bust, there is a light at the end of the tunnel. You may be able to buy your dream home sooner than you think.
If you are thinking of selling your home in the near future, now is the time. Housing inventory is low, interest rates are low, and buyer demand is high.
If you have any other questions about boomerang buyers or you’re curious about entering the housing market, just give me a call or send me an email. I would be happy to help you!
