About 7.3 million borrowers who lost their homes during the recession are poised to become homeowners again over the next eight years as their credit is restored, according to a report from RealtyTrac.
These ‘boomerang’ buyers are primarily Generation Xers and Baby Boomers, according to the report. Providing the economy continues to improve, a high percentage of these former homeowners will become borrowers again. They could even be a greater driver of the housing recovery than the much-discussed first-time home buyer, the report suggests.
Markets that are most likely to see a jump in boomerang buyers over the next eight years include Las Vegas-Paradise, Nev.; Cape Coral-Fort Myers, Fla.; Port St. Lucie, Fla.; Orlando-Kissimmee, Fla.; and Greeley, Colo. All together, there are 21 U.S. markets where boomerang buyers are expected to materialize, ReatyTrac says.
In the report, Chris Pollinger, senior vice president of sales at First Team Real Estate, covering the Southern California market, says that ‘those burned by the housing crisis should not immediately throw the baby out with the bathwater when it comes to their second chance at homeownership.’
‘Homeownership done responsibly is still one of the best-disciplined wealth-building strategies, and there is much more data available for home buyers than there was five years ago to help them make an informed decision about a home purchase,’ Pollinger says.