The real estate market boomerang buyers are returning to homeownership after a foreclosure, short sale or bankruptcy. They have spent the past several years rebuilding their credit and are ready to buy again, especially with mortgage rates near record lows and home prices still affordable in many markets across America. According to RealtyTrac, more than 7.3 million former homeowners, mostly Baby Boomers and Gen Xers who suffered through the housing bust, are now in a position from a credit repair standpoint to buy again.
As a result, this group represents a significant opportunity for real estate agents in the coming years. “Boomerangs” tend to be more conservative than Millennials when it comes to buying a house and will not go a penny over their allotted budget, according to a recent report by the financial advice website Bankrate. They also have the advantage of experience with home ownership. Read more https://www.happygoluckyhomebuyer.com/sell-your-house-fast-in-lawrence-in/
However, despite the positive trends in the economy and housing market, there are still obstacles keeping boomerang buyers off the market. One of the most significant barriers is the lack of available mortgage options. According to the Mortgage Bankers Association’s Mortgage Credit Availability Index, there are half as many mortgage lending options today than there were in 2004. As a result, it takes longer for potential borrowers to qualify for a mortgage and some choose to keep renting instead.
Another issue is stagnant wages and stunted personal savings rates, which can also deter potential boomerang buyers from re-entering the market. Personal debt and sluggish paychecks can add up over time, and some may be worried about falling home prices or interest rate increases when they finally purchase again.
Fortunately, these hurdles are slowly being overcome. New guidelines have been introduced by federal lenders that could allow up to 2.5 million formerly foreclosed and short-sale homeowners to reenter the market sooner than they would have under old rules. In addition, a growing number of local governments and financial institutions are offering special mortgage programs that provide incentives to entice boomerangs to return to the market.
These developments will allow more borrowers to move forward with their plans to purchase a home, especially if they sell their current property first and use the proceeds from that transaction to buy a new one. This will give a much-needed boost to the housing market and help restore a level of stability that has been missing since the housing crisis. This will benefit all involved, including prospective homebuyers, sellers and the overall economy. As the number of borrowers who are eligible to enter the market rises, the real estate industry should prepare to welcome them back with open arms. It’s a good idea for everyone to make sure they are prepared, so when the boomerangs come home again, their real estate market experiences will be positive ones.
