Optimistic Boomerang Buyers Face Breakthrough in Housing

Boomerang Buyers, predominantly Generation Xers and Baby Boomers, represent a significant population of homeowners who lost their home to foreclosure or short sale during the housing crisis. 2015 marks the end of the waiting period for many and begins the revival of these homeowners. RealtyTrac estimates over 7.3 million potential homebuyers will soon be returning to the market.

After being required to spend several years renting and rebuilding their credit, many will again be eligible to qualify for a mortgage. Rapidly rising rental costs and monthly mortgage payments equal or lower to rents, are an increased incentive for Boomerang Buyers to re-enter the housing market. Markets with inventory still deemed affordable will see the highest percentage of Boomerang Buyers return.

It's predicted that this surge of homebuyers could dramatically affect the market even more than the incoming millennial population. Over the next eight years, Boomerang Buyers will start to seize their window of opportunity, inching back to the market for a second chance at homeownership. Eight years after the crisis, many Boomerang Buyers will be able to qualify for Conventional loans again, or at minimum FHA, USDA or VA loan options, which allow for shorter seasoning periods following foreclosure or short sale.

If you have experienced foreclosure or short sale in the past, homeownership may not be out of reach. PRM is always happy to work with you to learn more about qualifying for a mortgage. Call or email today!