Return Buyers May Become Homeowners Once Again

Return Buyers May Become Homeowners Once Again

After the housing crisis in 2008, many homeowners were forced into foreclosure or short sale. However, since that time those individuals may have had enough time to repair their credit scores and gain access to homeownership once again. A study completed by the National Association of Realtors indicated the U.S. housing market may see a substantial boost in activity due to return buyers.

Restored credit allows return buyers to qualify for mortgages

Approximately 9.3 million homeowners may decide to enter the housing market due to improved credit scores. Since 2008, when the housing crisis occurred, these individuals who previously owned homes finally could repair their credit scores and are now capable of purchase a home of their own again.

By entering the market, return buyers may increase the demand for housing inventory which will bolster the housing industry.

"The deep wounds inflicted on the housing market during the downturn are finally beginning to heal as distressed sales continue to decline and home prices in some parts of the country have bounced back to their near-peak levels," said Lawerence Yun, NAR's chief economist. "Borrowers with restored credit will likely have the ability and desire to own again, encouraged by the long-term benefits homeownership provides in a stronger economy and more stable job market."

Some purchased homes already

Nearly 950,000 return buyers were able to repair their credit and already invested in new homes according to an infographic developed by NAR. Nearly 1.5 million return buyers are expected to be capable of purchasing real estate within the next five years, according to NAR.

Current conditions favor all buyers

Accessible home loans, consumer confidence, low mortgage rates and the rising cost of rent allow easier access to homeownership for all buyers, according to Zillow. As more individuals enter the housing market, it will continue to stabilize and improve.