Phoenix boomerang buyers revisiting home ownership after housing crisis

Aug 25, 2015, 3:43 PM
(AP Photo/Julie Jacobson, File)...
(AP Photo/Julie Jacobson, File)
(AP Photo/Julie Jacobson, File)

Boomerang buyers are swinging back into the housing market.

A study from the National Association of Realtors shows many of those buyers who lost their homes during the housing crisis have restored their credit and are ready to become homeowners again.

Phoenix, one of a number of cities hit hard by the market meltdown several years ago, is now seeing an increase in return buyers.

Tina Tamboer of The Cromford Report told KTAR News 92.3 FM’s That Real Estate Show we should expect to see more boomerang buyers return to the Phoenix market over the next few years as they get their credit in order.

“Most people have to wait seven years for conventional financing after foreclosure,” Tamboer said, adding the housing crisis began in 2008.

Still, even as they make their return, Tamboer said we may not see as many boomerang buyers in the Phoenix area compared to other markets due to the short supply of homes under $250,000 in the Valley.

Another study by Realty Trac also listed Miami, Las Vegas and Tampa, Florida in the category of markets that should expect to see an increase in boomerang buyers.

An estimated 700,000 of the 7.3 million homeowners who experienced foreclosures or short sales during the housing crisis are now eligible to get a mortgage again this year. Additionally, the NAR study estimated 1.5 million formerly distressed owners will likely buy homes again over the next five years as they become eligible.

The NAR’s chief economist, Lawrence Yun, said the use of new credit scoring models can help improve eligibility for home ownership among return buyers and help lenders examine buyers’ credit risk more thoroughly to avoid the pitfalls of the loose lending standards of the mid-2000s.

He also said borrowers with restored credit are encouraged by the long-term benefits that home ownership provides in a stronger economy and more stable jobs.

Join Realtor Diane Brennan for That Real Estate Show Sundays at 8 a.m. on KTAR News 92.3 FM.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

(Match Market & Bar Photo/Timothy Fox Photography)...
KTAR.com

What’s cooking? Spring Arizona Restaurant Week starts 10-day run Friday

More than 100 restaurants have signed on to show off their menus during Arizona Restaurant Week, which kicks off Friday.
13 hours ago
(Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)...
Danny Shapiro

Phoenix gas average eclipses $5 a gallon with more increases likely this summer, expert says

Phoenix has eclipsed an average of $5 for a gallon of gasoline and prices are likely to continue rising for a while, an industry expert said Wednesday.
13 hours ago
(Pixabay Stock Photo)...
KTAR.com

Bicycle rider dies after getting hit by car on Phoenix street

A man who was riding a bicycle died after getting struck by a car Tuesday night on 51st Avenue near Camelback Road in Phoenix, authorities said.
13 hours ago
U.S. Sen. Mark Kelly (D-Arizona) meets with a Border Patrol official in Douglas, Arizona, in April ...
Kevin Stone

Here’s what Sen. Mark Kelly of Arizona wants to see before Title 42 is lifted

U.S. Sen. Mark Kelly of Arizona said there will be chaos at the southern border if Title 42 ends before the government is prepared to address the surge of migrants expected to follow.
13 hours ago
(Phoenix Fire Department Photo)...
KTAR.com

More than 150 firefighters beat back flames at Phoenix pallet yard

More than 150 firefighters spent hours putting out a large fire at a pallet yard late Tuesday, first responders said.
13 hours ago
(Pexels Photo)...
Danny Shapiro

Chandler is No. 1 nationally for increase in 2-bedroom rent, according to report

Chandler is tops nationally for increase in two-bedroom rent, according to a report released Friday.
13 hours ago

Sponsored Articles

(Twitter photo / Coco5)...
Coco5

Suns star Devin Booker’s all-natural sports drink Coco5 perfect for any activity

Devin Booker is leading the Suns in pursuit of their first NBA championship while also working to provide people proper hydration with Coco5.
...
By Dr. Richard Carmona

Now’s a great time to receive your COVID-19 vaccine

If you haven’t received a COVID-19 vaccine yet, now’s the time to join many other of your fellow Arizonans who are doing so right now. No one will criticize you; there is no shame. In fact, you’ll be welcomed with smiles and open arms!
...
DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

In Sonoran heat, prevent costly AC repairs with an annual tune-up

As winter has finally passed and the days are becoming warmer, now is a good time to be sure your AC unit is polished and ready to run.
Phoenix boomerang buyers revisiting home ownership after housing crisis