Southwest Florida is number two in the country for “boomerang buyers”, people who blew up their credit with foreclosures in the housing crash but now are starting to regain their homebuying abilities, according to a study recently release by RealtyTrac.
Between now and 2022, boomerangs will be 21.4 percent of the number of housing units here: potentially 79,216 home buyers, the Irvine, Calif.-based real estate data company said.
That’s second only to 26.3 percent for Las Vegas, which during the home price implosion that started in 2006 was often neck and neck with this area in foreclosure statistics.
Generally, the boomerangs are making wiser home-buying choices than they did in the past, although debt to ratio seems to be the largest issue for the group when attempting to procure a home loan.
Not all the foreclosures in this area will necessarily translate into new local homebuyers in the future. The first three years were heavily non-homesteaded and predominantly from out of state. Additional measures such as owner financed land have helped spur this type of buyer in the SWFL market.
The buyers and investment real estate seekers would buy three houses at a time with the plan of getting rich flipping them.
Area marketing insiders predict the boomerangs coming back will add a welcome depth to the local home-buying market. Right now the housing recovery has been fueled by baby boomers with good credit and lots of equity, but it’s been mainly the blue chip buyer who’s brought the market back from the abyss.
Now the market will begin to be fueled by people who were in their 20s or maybe early 30s in 2005, 2006, who got an easy loan and lost the house. They’ve got a willingness to buy again, but they’re afraid because of what happened.
They’ll eventually be followed by so-called millennials, people who are in their 20s now but haven’t embraced homeownership in great numbers yet. That won’t happen for awhile but in three to five years it could be quite a phenomenon.
To learn everything you need to know about the SWFL and Cape Coral land scene, contact a member of the Gratia Group at (239) 333-2221.