The financial crisis caused many people in Delaware and across the country to lose their homes to foreclosure or short sale. It was especially devastating for those with sub-prime mortgages in communities that were part of the “housing bubble.” Now that it has been years since the recovery, many of these buyers are looking to return once more to the real estate market. Homeownership can be an important way of building wealth. While many people are wary of losing out again, they are also taking precautions to protect themselves, like seeking more affordable homes.
These home buyers are being referred to as “boomerang buyers” because they are returning to the residential real estate market after being cast out. Experts say that this group of people could help to boost a real estate market that was showing signs of slowing down. In the first part of 2019, home sales were down 6.6 percent over the year before. One analyst said that he expected buyers aged 35 to 64 to drive recovery in the market. Many of these people were hesitant to buy due to their prior experiences with buying a home.
The financial crisis was largely caused by the failure of the home mortgage market along with the bursting bubble of overvalued properties. There were 7.3 million foreclosures and 1.9 short sales between 2006 and 2014. People who have gone through a foreclosure or short sale must wait three to seven years before seeking a new mortgage.
Potential buyers who lost their homes in the crisis are once again eligible to invest in the real estate market, but there are a number of factors to take into account when considering buying or selling a home. A real estate attorney can advise a buyer about their options and help them negotiate a successful home purchase contract.