There are 9.3 million former homeowners who were displaced
by foreclosures, short sales, and deeds in lieu of foreclosure between 2006 and
2014. Do they constitute a potential
market that could drive demand for new and existing homes over the next
decade? The National Association of
Realtors® (NAR) has just released a study of that pool and their findings that
many of them are already homeowners again and many others will never return to homeownership.
To date, nearly a
million of these former owners have returned to the market and many more of
these “return buyers” (also referred to as “boomerang buyers”) are already
qualified, but waiting. Overlays and credit impairment have held a
significant number back and could impact thousands more potential return buyers
in the coming years.