Boomerang buyers, as defined by a recent report, include the millions of former homeowners who lost their homes during the financial crisis. Estimates show that there could be as many as 7.3 million of these potential buyers out there and only about 1 million of them have since bought a house. That means, there are 6 million former homeowners who could be returning to the real estate market over the next few years. Combined with evidence that younger buyers are beginning to buy homes after a period when first-time buyers were underrepresented, these return buyers could further strengthen an already improved real estate outlook. But when will they return? Well, to some extent, boomerang buyers have been held back for the past several years because of damage to their credit suffered during the housing crash. However, these buyers should soon feel some relief. That's because foreclosures only stay on credit reports for seven years. Which means, buyers who suffered a financial misfortune during the crisis should soon be able to further re-establish their credit, which could lead them back down the path of homeownership. This has been happening in the Greenville, NC area where a large number of first time buyers as well as former homeowners have been flooding the market and buying new homes. Though purely speculative, the theory joins a growing number of forecasts calling for an increasingly healthy and balanced housing market in the months ahead. More here.

Boomerang Buyers In Greenville, NC