When Will Return Buyers Come Back To The Market?

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Between 2006 and 2014, nearly 9.3 million borrowers were foreclosed on, received a deed in lieu of foreclosure, or short sold their home. If, when, and how these former homeowners return to the housing market will likely have a significant impact on residential real estate in the years ahead. For this reason, these potential buyers are the subject of a recent analysis from the National Association of Realtors. According to their data, nearly a million of these buyers have already returned and an additional 1.5 million are likely to buy a house in the next five years. Still, there are more than 500,000 former homeowners that are either hampered by tight lending standards or only qualified for a mortgage in the first place because of the loose lending standards of the mid-2000s. Still, with an economy and job market on the mend, in addition to rebounding home prices and wage growth, there will be an ever larger group of former homeowners who will have, not only the desire to buy a house, but the means. Along with pent-up demand among younger Americans hoping to become first-time buyers and current homeowners looking to trade-up from their current residence, these potential home buyers will have an impact on home sales and the housing market at large over the next decade. More here.

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