Boomerang buyers could be key to real estate market in 2014
Josh Salman | Herald-Tribune | December 30, 2014 | link
Like a boomerang, recession-battered borrowers are re-entering the home market in droves. (AP archive)
When real estate values began to drop in 2007, hundreds of thousands of Floridians were evicted from their homes through foreclosures or short sales — giving way to the deepest economic collapse in more than half a century.
Now those same delinquent borrowers who were seen as partially responsible for the prolonged slump will become crucial to sustain the real estate recovery into 2014 and beyond, a new survey suggests.
Like a boomerang, these recession-battered borrowers are re-entering the home market in droves after years of renting, nursing their credit and saving enough to buy again.
With investor and retiree purchases both generally expected to subside next year, these so-called boomerang buyers could become vital to propel housing demand and transition the market back to favoring middle-class families.
“Boomerang buyers have had a taste of homeownership, they have seen all of the benefits, and they’re ready to get back in,” said Jon Maddux, co-founder of LoanSafe. org and AfterForeclosure.com, websites designed to help distressed borrowers regain financial stability.
“We’re seeing in markets all across the country,” Maddux said. “These buyers will be the key to the recovery in 2014.”
Based on a poll of 140,000 LoanSafe. org members, a desire to rejoin the housing market is growing rapidly among buyers forced to leave their homes during the foreclosure crisis.