It seems we always have a new catch phrase or industry jargon ….. short sales, REOs, buyer’s market…… and now it’s Boomerang Buyers. You are going to start hearing more about this buying group and I’m hoping to share a bit of insight with you too.
CNN Money is reporting that 4.8 million borrowers have lost their homes to foreclosures and 2.2 million to short sales since the bubble burst. Many are now starting to bounce back.
I was one of the first agents in our area to work short sales – I closed my first listed short sale in 2007. We had no training of it then, very little talk of it, and I bonded with a negotiator in Countrywide who worked with me until the merger with Bank of America. My training was boots on the ground with short sales! From that time, Lisa and I have helped many people with short sales to avoid foreclosures.
We started to do a bit of homework on our market’s history. Our local market consists heavily of residential and 2nd homes/investment properties. It appears from the numbers that 2011 was the bottom with our single family homes and condos. However 2009 appears to be bottom for our homes along Hwy 30a – a luxury 2nd home market.
The boomerang buyer fits in to the equation in that these buyers represent those former homeowners who lost their homes to foreclosure or short sale. The heaviest years for these sale types were 2009-2012. The borrowers who dealt with either of these in the earlier years are now possibly in position to purchase again. We are seeing many lenders and volume home builders now setting up programs to help these individuals in credit repair.
A foreclosure is going to set a person back further in the recovery years than a short sale will. It is apparently taking 3-7 years to recover however we are seeing some who sold their property as a short sale buy again within 2 years.
I was in a closing last week where the buyers were purchasing a $249,000 home in Niceville, FL. The average home in Niceville is about $260,000 and it is a Seller’s Market. Homes move quick and homes for rent are hard to find. In comparison to this home it would rent for about $2000 per month. This couple purchasing with taxes and insurance will be paying $1300 per month. A considerable difference to renting.
Even though the bottom was probably in 2011, we have remained stable to those 2011 numbers with modest increases in some areas. We have been faced with a loss of value of 10 years back! These prices may not ever, and we pray not, return to the 2005 appreciation increase levels but at some point we will begin to steadily and properly gain appreciation.
We have so many buyers in the market currently – those who want to live here due to our incredible schools & beaches, military transfers, smart investors, and ….. the 2009 & 2010 distressed sellers who are now 2013 & 2014 potential buyers! AND just like a boomerang – they are back!
by: Robbie Fenn & Lisa Norton
Lisa Norton & Robbie Fenn In Washington DC lobbying for property owners and attending a Real Estate Conference
Realtors, Broker Associates, and Sales Managers for Coldwell Banker United, Realtors. Both have been named Destin and Ft Walton Beach Realtor of the Year – 2 years each. If you would like more information on the market give Robbie & Lisa a call at 850-897-5366
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