"Boomerang buyers" back in the market
- Blog Post by: Jim Buchta
- July 18, 2013 - 10:52 AM
In a sign of just how long the housing crash - and recovery - have been underway, people who lost lost their home through foreclosure or short sale during the past five years are now back in the market. In fact, 10 percent of housing demand nationwide this year will come from these “boomerang” buyers, according to research from John Burns Real Estate Consulting.
That's a significant increase from last year when just 4 percent of demand came from this group. JustListed talked with Sean Fergus, a researcher for John Burns, who said that in the Twin Cities metro about 5 percent of all buyers over the next three or four years will be boomerangers.Fergus said that the the typical waiting period after going through foreclosure is three years before you can be eligible for a FHA-insured loan.
This is an interesting trend, and it has implications for both the resale and rental markets, because so many of the people who went through foreclosure were forced to rent.
If you're boomerang buyer, or want to become one, please tell us your story. Send an email to firstname.lastname@example.org.
© 2016 Star Tribune