These individuals were homeowners who defaulted on their mortgages or short sold their homes during the housing market crash, but have since repaired their credit and are now interested in purchasing properties again. According to a recent survey, there are currently about 7.3 million of these boomerang buyers in the United States.
The survey found that the majority of boomerang buyers were ages 36 to 50, with 30 percent of them being between the ages of 40 and 44. About 53 percent of respondents identified themselves as Hispanic, African-American or Asian, while 18 percent identified as Caucasian. In addition, more respondents had a high school education or only some college experience.
Rob Chrane, CEO of Down Payment Resource, commented on the findings of the survey, saying, “This large and growing population of potential homebuyers can help drive much needed demand for housing and should be considered when developing sustainable homeownership programs.” He noted that many of the potential boomerang buyers could benefit from down payment assistance programs and other support, such as credit counseling, to help them re-enter the housing market.
In spite of the current situation, some analysts remain cautious. The survey found that 78 percent of the potential boomerang buyers stated that they would not buy a home unless they could secure a loan with affordable monthly payments. This suggests that some of these individuals may still be unable to qualify for a mortgage, due to their past financial history or lack of income. Overall, the survey results indicate that there are potentially millions of buyers that could enter the housing market over the next few years, however, lenders will need to develop strategies for helping these buyers obtain financing.
The survey conducted by Down Payment Resource provides insight into the current state of the housing market and the potential for future growth. Boomerang buyers are a large population of individuals who were affected by the mortgage crisis of 2008, either by defaulting on their loan or short selling their home. These individuals have since repaired their credit and are now interested in purchasing properties again. The survey found that 7.3 million boomerang buyers could potentially enter the housing market over the next few years.
The majority of these buyers were identified as being between the ages of 36 and 50, with 30 percent between the ages of 40 and 44. Of the respondents, 53 percent identified themselves as Hispanic, African-American or Asian; 18 percent identified as Caucasian. In addition, most respondents had a high school education or only some college experience.
Rob Chrane, CEO of Down Payment Resource, believes that this large and growing population of potential homebuyers can help drive much needed demand for housing and should be considered when developing sustainable homeownership programs. With access to down payment assistance programs and other forms of financial aid, boomerang buyers could be helped to re-enter the housing market.
However, it is important to note that 78 percent of the surveyed potential boomerang buyers stated that they would not buy a home unless they could secure a loan with affordable monthly payments. This suggests that some of these individuals may be unable to qualify for a mortgage, due to their past financial history or lack of income.
Overall, the survey results indicate that there are potentially millions of buyers that could enter the housing market over the next few years, however, lenders will need to develop strategies for helping these buyers obtain financing. With the right assistance and guidance, boomerang buyers may be able to become stable and successful homeowners once again.
This article was contributed on Nov 03, 2023
