The Boomerang Effect
“Home Buyers returning in droves”
They’re back! Eight years after the real estate bust, many past homeowners who lost their homes have rebuilt their credit and are back in the market forming America’s growing ranks of boomerang buyers. In the next few years, these buyers will form one of the most important segments of the real estate market. About 700,000 of the 7.3 million homeowners who went through foreclosures or short sales during the bust have the potential to get a mortgage again this year.
The home-ownership rate in the United States reached an all-time high at 69% in 2007 but has dropped to a rate of 64%. With the large number of Boomerang buyers returning due to short wait periods, home-owner percentage will soon increase. We are now seeing 2-3 year wait periods to qualify after a foreclosure or short sale and 1 to 3 years after a Bankruptcy.
If you’re on the side lines paying the increasingly high rental prices, consider your options. When is the last time you talked to your loan broker?