It appears the housing market is making a comeback. The National Association of Realtors performed research that shows formerly distressed homeowners are ready to re-enter the housing market. However, damaged credit may restrict the amount of people who are eligible to purchase real estate.
Between 2006 and 2014, approximately 9.3 million homeowners were forced into foreclosure. On a positive note, nearly a million have already bought another home, and 1.5 million will become able to buy within the next five years. These projections are based on a number of important factors. For example, the NAR studied the time necessary to repair a seller’s poor credit and the conditions behind the most common credit issues. The states estimated to see the largest return of buyers are Florida, California, and Arizona.
Although an increase in housing demand is expected, many potential buyers will be limited by low credit scores and the inability to save for a down payment. However, a long time has elapsed since many owners were forced into foreclosure, so there have been opportunities to decrease credit risks. By catching up on other bills and establishing solid records of payment, many individuals have overcome credit problems.
Thankfully, the scars made within the housing market are beginning to heal. Foreclosures and short sales are in decline, and home prices are beginning to recover in many parts of the country. As the economy strengthens and better jobs become available, borrowers with recovering credit will have the ability and desire to purchase homes.