Homeowners whose credit scores were damaged by the recent market recession are now able to re-enter 
the housing market and causing a boost in demand, according to research recently reported by the National Association of Realtors. These are people that underwent a foreclosure or short-sale during the years when the housing market was in crisis, but now have been able to restore their credit and have once again been deemed eligible by the bank to borrow the money necessary to buy a home. This means good news for the housing market, because with all these newly eligible buyers comes an increase in demand that will hopefully prompt developers to construct more inventory in response.
The NRA conducted this survey by analyzing the current status of nearly 9.3 million Americans that underwent a foreclosure or short sale over the past eight years, in order to gauge what percentage of them would be re-entering the market in the near future. According to their research, almost a million of these previous homeowners have already been deemed eligible to purchase again, and about 1.5 million more people are predicted to become eligible over the next five years. This data shows the magnitude and resilience of these previous homeowners, who many had probably counted out due to their past struggles. It also evidences a turnaround for many deserving Americans and signals a fresh start after years of financial woes. As Lawrence Yun, NAR chief economist puts it, “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. 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.” Many previously distressed homeowners are now able to overcome their reservations and consider investing in a home again, which is good news for not only the general economy but also the real estate market specifically.
This news is particularly important for Florida, as it is predicted to be among the three states expected to see the largest amount of return buyers, according to the survey. The NAR’s data shows that Florida, California and Arizona will have the largest number of returning buyers to the market over the next decade, which stimulate our thriving real estate sector even more. However, this also means that the already high demand for properties in the sunshine state will increase, so now is the time to invest in South Florida real estate before all the best inventory is bought up. Contact a RE/MAX agent today to learn more about all the amazing commercial and residential listings available!