A study by the NAR found that boomerang buyers – households that were foreclosed on during the crisis that are back in the market – may boost housing demand.
After analyzing nearly 9.3 million homeowners who underwent a foreclosure, received a deed-in-lieu of foreclosure, or short sold between 2006 and 2014, to estimate the amount of creditworthy borrowers expected to re-enter the market, the NAR found that markets in the states of California, Florida, and Arizona are expected to see the largest share of return buyers within the next decade.
Moreover, the findings say that nearly a million of these former homeowners have likely already purchased a home again, and an additional 1.5 million are likely to become eligible and purchase over the next five years.
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