RealtyTrac defines Boomerang Buyers as millions of former distressed homeowners who surrendered their real estate homes and condos during the past financial meltdown. It is estimated there could be as many as 7.3 million boomerang buyers, and of this group, only 1 million have purchased a home again.
This indicates the possibility of 6 million former homeowners sitting on the sidelines with the possibility of returning to the real estate market as potential homebuyers in the near future. Adding to this, confirmed data shows younger buyers are also beginning to purchase homes after a time when first-time buyers were underrepresented. These return buyers could further strengthen an already established outlook for a real estate recovery.
So, the question remains... when will these return buyers re-enter the market?
To some extent, boomerang buyers have had to wait several years because of the negative credit history and low credit scores as a result of forfeiting their former property during the housing meltdown. However, these folks should soon be in a better financial position as foreclosures typically only remain on ones credit history for seven years. Those who experienced financial hardship during the crisis may soon be in a position to once again re-establish their credit in good standing and re-enter the housing market as homeowners. Although hypothetical at this time, this idea rings true with many forecasts predicting a continued robust and stable real estate housing market in the coming months. More here..