Skip to main content
You have permission to edit this article.
Trend: ‘Return buyers’ may boost housing demand in coming years

Trend: ‘Return buyers’ may boost housing demand in coming years

  • Updated
Trend: ‘Return buyers’ may boost housing demand in coming years

Roof tops with some solar panelling are just one of the attractions for home buyers coming back into the market. 

Formerly distressed buyers making their way back into the market

With the foreclosure crisis nearly a decade in the rearview, formerly distressed homeowners with re-established credit are beginning to re-enter the housing market, according to new research from the National Association of Realtors.

The NAR looked at the more than 9 million homeowners that underwent a foreclosure, deed-in-lieu of foreclosure or short sales between 2006 and 2014 to get an estimate of how many creditworthy borrowers would be re-entering the market in coming years. The NAR found that nearly 1 million former owners likely have purchased a home already and another 1.5 million are likely to become eligible to buy a home within the next five years. However, tarnished credit will continue to keep millions out of the market in the coming decade.

The NAR study looked at the time needed to repair a distressed seller’s credit, whether the seller’s credit profile (at time of purchase) was below historical standards, if it met sound underwriting standards and whether they would meet credit requirements in today’s market. California, Florida and Arizona – three of the states hardest hit during the housing crisis – are expected to see the largest share of return buyers.

“While loose lending standards in the mid-2000s led to the rise in subprime buyers who ultimately became distressed owners, falling home prices and rising unemployment resulted in a large share of prime borrowers also defaulting or going through a short sale,” Lawrence Yun, NAR chief economist, said in a statement. “Now fueled by a gradually improving economy and the strong rebound in home prices, some of these former distressed owners have returned to the market, and more will likely become eligible in coming years.”

© CTW Features


Make your house a home

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Most Popular

Q: Tim, I have a big decision to make and need your help. I love the look of colored brick for paving, including my driveway, sidewalks and patio. The issue is I’ve started to pay attention to older installations of colored concrete paving brick and many look faded. Why is that happening? Some look horrible, especially at a restaurant I patronize. I don’t want my investment to look faded in a few years. Do I have alternatives, and is there a way to restore the color of faded concrete brick pavers? —Mary Chris F., Tampa, Fla.

Q: We live in a subdivision that was built in 1962. The houses are situated on irregularly shaped lots to form an open area that is landscaped with vistas of mature trees and a leafy, verdant backdrop. Property lines are marked with very low, split-rail fences. We have an open airy feeling in our subdivision. Our picture window looks out over a portion of a neighbor’s lot that makes a pleasant view.

Get up-to-the-minute news sent straight to your device.


News Alerts

Breaking News


Entertainment & Dining

Latest News

Local Sports

NWI Prep Sport News

Weather Alerts