BOOMERANG BUYERS & THE 2018 HOUSING MARKET
When the U.S. housing bubble burst a decade ago, an estimated 10-million Americans were forced into foreclosure from the start of the housing crisis in 2007 to its end in 2010. The waiting period after a foreclosure is seven years (at which point the bankruptcy drops off credit reports), meaning most of the homeowners affected by the collapse are ready to buy again. Known as “boomerang buyers”, these rebound homeowners have a profound effect on the current housing market and now most mortgages require a down payment. For the boomerang buyers who perhaps purchased their last home with no down payment at all, it can be a hard pill to swallow.
Experts agree that this year, home prices will continue to rise. This means if you’ve been contemplating putting your home on the market, now is the time to do it! With an avalanche of boomerang buyers hitting the market and driving the prices up, there’s a good chance you’ll make a nice return on your investment if you choose to sell your home during this time.
If you’re looking to buy, however, this isn’t the most wonderful news. The rising prices of homes will make them more difficult to afford to first-time buyers, and many will be knocked out completely from the buyer pool. This shouldn’t discourage you, though, there are many programs available to assist homebuyers.
Whether you’re buying or selling, it’s important to work with local market experts. Working with Berkshire Hathaway HomeServices ensures you will get in-depth property and community information, up-to-date home buying trends, and flexible showings to work around your schedule. If you’re selling, we offer a seamless process, accurate pricing, professional marketing, and expert negotiation. Contact John M. Brabham of Berkshire Hathaway HomeServices today (803) 775-1201.