What is a 'Boomerang Buyer?'
Following the recession, millions of homeowners felt the double-whammy of poor credit ratings and an unstable economy, and many of these families wound up moving back in with their parents or navigating the rental sphere once again.
Recent market research suggests, however, that the homeowners who experienced a short sale, foreclosure, or bankruptcy during this time period are now returning to the market, a trend reminiscent of a boomerang's trajectory.
These former homeowners have been saving to put another down payment on a new home and working to improve their credit scores. In fact, the National Association of Realtors estimates that over 1 million of these buyers have restored their credit to solid standings and that 1.5 million will reach that point within the next five years!
The 'Boomerang Buyer' group is an important one to watch, as it serves as a litmus test for economic confidence and indicates that the housing market is returning to a healthier and inclusive state. Credit scores are an important part of the homebuying process, but the dynamics of the Boomerang Buyer group also speak to the other factors that affect mortgage approvals.
Check out the infographic below for more information about this trend!
This increase, along with the growth of first-time homebuyers, points towards a steadying economy.
If you're a Boomerang Buyer looking to take advantage of this year's low mortgage rates instead of paying rent, contact the Real Group Team! We would love to help you reestablish yourself in housing market and find a dream home!
