RealtyTrac predicts millions of foreclosed-on buyers will begin buying again in 2015

Approximately 7.3 million Americans who lost their homes during the foreclosure crisis will begin to become homeowners again this year, predicts RealtyTrac.

Over the next eight years, RealtyTrac believes that these former homeowners will seek to purchase a house again, according to their latest report. The “boomerang buyers” are primarily Generation Xers or Baby Boomers, people between the ages of 39 and 70.

According to RealtyTrac, the first batch of homeowners who lost their homes to foreclosures or short sales during the crisis have now surpassed the estimated three to seven years that it typically takes for one to fix their credit and qualify to purchase a home. From 2007 to 2014, there was “above historically normal foreclosure activity,” they reported.

However, since the economy has picked up, many foreclosed-on homeowners are able to look into purchasing again. RealtyTrac predicts that Realtors® will be seeing many of these clients over the next eight years.

More than 500,000 former homeowners should be able to qualify to purchase again this year, according to RealtyTrac. For 2016, RealtyTrac predicts one million buyers will be looking to buy again. Nearly 1.3 million people will be looking in 2017, and the number of boomerang buyers is predicted to hit its high of 1.3 million in 2018.

RealtyTrac suggests that the areas most likely to benefit from this are regions that suffered most during the recession and thus will have lower monthly payments.

“The housing crisis certainly hit home the fact that homeownership is not for everyone, but those burned during the crisis should not immediately throw the baby out with the bathwater when it comes to their second chance at homeownership,” said Chris Pollinger, senior vice president of sales at First Team Real Estate, told RealtyTrac.

“Homeownership done responsibly is still one of the best disciplined wealth-building strategies, and there is much more data available for homebuyers than there was five years ago to help them make an informed decision about a home purchase,” added Pollinger.

Time will tell if RealtyTrac’s prediction will be an accurate one.

Has your market seen many “boomerang” buyers yet?