Though national property records show many consumers fell victim to foreclosure and short sales during the recent economic downturn, many have spent the last few years rebuilding their credit and savings - and are now reentering the housing market as boomerang buyers.
According to USA Today, this special type of consumer has been returning in force and, in some instances, buying properties larger than those that were initially repossessed from them. Employing information released by John Burns Real Estate Consulting the news source reported that almost 5 million homeowners lost properties in foreclosure actions since 2007. As 2012 saw boomerang buyers comprise 4 percent of total home sales nationwide, housing forecasts estimate the coming year may see 10 percent of sales be completed by returning buyers.
Areas which saw a notable amount financial strain and foreclosure, especially in Arizona and California, saw a large boost in sales by boomerang buyers, USA reported. A supposed 40 percent of Phoenix home purchasers were such consumers, while 20 percent of all houses recently sold in San Diego were bought by boomerang buyers.
The two states may have the most active concentration of boomerang buyers, as the new source reported the Southwest and Southern California have been exhibiting a considerable amount of transactions with the consumer classification. The Burns Consulting survey, which evaluated 178 home building professionals nationwide, found that around 14 percent of all housing sales completed during the final six months of last year in the regions included buyers who had previously fallen victim to foreclosure. Home sales finalized in the Northwest, Southeast and Northeast saw a total of just 5 percent of purchases by boomerang buyers.
If mortgage records continue to remain at low levels, consumers could be afforded a number of additional opportunities to obtain affordable residential lending and purchase property of their own.
Additional economic improvement may be seen in strengthening automobile sales
In addition to the figures detailing boomerang buyers increasing their home purchasing activity, positive signs of the strengthening national economy may be found in recent automobile sales. The Wall Street Journal recently reported that both the Ford Motor Company and Chrysler Group experienced monthly and yearly improvements in sales during March. Last month, Ford recorded the sale of 236,160 vehicles, representing a 21 percent jump from February figures and a 5.7 percent hike from year-ago levels. Chrysler exhibited similar gains, as its 171,606 automobile sales during March was a rise of 23 percent from the preceding month's totals, and a 5 percent bump from March 2012 sales.