Foreclosed Buyers Returning to Market
Foreclosed homeowners in Las Vegas were ranked at the top of the U.S. for having the ability to get into a new home or condominium by a major real estate research firm.
California based RealtyTrac says former mortgage holders in Las Vegas have more of a chance to be “boomerang buyers” with the ability to get back into homeownership than anywhere else in the nation.
Homeowners who suffered through foreclosures or short sale in the economic downturn are able to purchase homes again three years after a foreclosure. A special FHA lending program provides special 3% down payment options for buyers who suffered through foreclosure, and have re-established their credit.
The buyers make up a huge percentage of potential home buyers in the housing recovery and compose more than one-in-four home buyers for the next eight years, according to RealtyTrac officials.
“It’s similar to how a lot of people look at how millennials will really impact the future of the housing market,” RealtyTrac vice president Daren Blomquist said. “It’s not going to make or break the market, but the market is better served if boomerang buyers do become homeowners again in larger numbers.”
The buyers pose a major impact for the Las Vegas economy as a whole and the housing market, which has struggled to maintain a recovery, despite near record low mortgage rates. Home builders have new projects planned throughout the valley, including housing developments in Inspirada and Cadence in Henderson and Skye Canyon in the northwest.
A stonger economic recovery could be enabled by a large portion of boomerang buyers making home and condominium purchases. There are 35,000 homes in Las Vegas that are vacant as a result of the downturn, and many of them would also be re-sold as a result of first time buyers and homeowners who have suffered through foreclosures.
The inventory of homes listed for sale on the market has doubled in the past three months as homeowners increasingly place their properties on the market to sell.