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According to research from RealtyTrac, about 7.3 million people who owned a home and went through a foreclosure during the housing market collapse could be back in the real estate market in the next few years. (Aka Boomerang Buyers) Those who lost their home due to foreclosure or short sale in 2015 are now past the seven-years it takes to repair their credit and qualify to buy a home. These boomerang buyers will be moving past that seven-year window over the next eight years of above historical foreclosures from 2007 to 2014. While it may see unimaginable any lending institution would give them loans again, some have been financially forgiven.
While millennials have been seen as the generation whose homeownership is below what is considered normal, are changing the landscape of the real estate market. These boomerang buyers, who are mostly Generation Xers or Baby Boomer, represent a demand that could shape the housing market in the short term even more dramatically. The U.S. Census data shows that home ownership rates for those ages 35 to 44, were 11% below historical averages going back to 1994 in the third quarter of 2013, while home ownership rates for the age 35 of 35 were 10 % below historical averages.
The market is most likely to see a large share of boomerang buyers between the years of 2015 and 2022 that are among those that collapsed the worst when the housing market collapsed. The markets with the largest number of expected boomerang buyers from 2015 to 2022 are Phoenix (348,000), Miami (322,000) and Detroit (304,000). Again, the fact that someone may be a buyer does not mean much. Many of these people might rather rent.
If you are in the market for a new house and would like information on homes for sale, or are first time home buyer not working with a Realtor and would like to schedule a consultation with a qualified Oakland County and Macomb County Realtor, please complete the Lang Premier Properties contact form to have a real estate agent contact you.
Lang Premier Properties are Birmingham Realtors specializing in Oakland County Real Estate. Stephanie is an agent with Lang Premier Properties. See what past clients have to say about Stephanie Lang. Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying a new luxury estate.