The National Association of Realtors is reporting that Arizona is among the states that are expected to see the largest share of return buyers within the next 10 years.
Nearly a decade since the start of the foreclosure crisis, formerly distressed homeowners with restored credit are re-entering the housing market, but damaged credit profiles and lender overlays will greatly restrict the overall share of those eligible to buy, NAR said in a news release.
The trade association analyzed the nearly 9.3 million homeowners that 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 housing market as a return buyer in upcoming years, the release said.
Research showed nearly a million of these former owners 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, representing an additional source of buyer demand for the housing market. However, the release said, because of low credit quality, millions more will not be able to re-enter in the coming decade.
Additionally, Bloomberg reported today that sales of previously owned homes climbed in March to the highest level since September 2013.
For more details on the NAR research, click here.
