NATNews Blog > July 2016 > ​Boomerang buyers making a gradual return

    ​Boomerang buyers making a gradual return

    7/27/2016 10:30:19 AM
    By Kristine Yao, CoreLogic  
     
    Next year marks seven years since the foreclosure crisis peaked in 2010, during which enough time would have passed for the black mark of foreclosure to be erased from millions of consumer credit reports.
     
    In total, 1.9 million homeowners who faced owner-occupied foreclosures between the start of the housing crisis in 2007 through 2010 will have met the seven-year period after which the Fair Credit Reporting Act requires derogatory information to be removed. By the end of 2020, another 1.2 million homeowners who lost their homes to foreclosure between 2011 and 2013 will become eligible.
     
    While millions of former homeowners reentering the buying market would have a significant impact on home sales, historical data shows a more gradual return rate for these so-called boomerang buyers, with less than half returning to homeownership even 16 years after the foreclosures were completed. Historical return rates show recent incremental volumes of 150,000 boomerang buyers returning per year, or 12,500 per month. Of the 4.4 million owner-occupied foreclosures completed since 2000, 1 million foreclosed homeowners have returned.
     
    CoreLogic property tax and sale transaction data was linked to unique consumers from which a random sample of one million individuals who underwent owner-occupied foreclosures between 2000 and 2013 were tracked over time to determine how many returned as boomerang buyers.
     
    Cumulative return rates of boomerang buyers vary by foreclosure vintage. A decade after their foreclosures, 38.5 percent of homeowners who lost their homes in 2000 returned as buyers. In comparison, only 26.3 percent of 2006 foreclosed homeowners returned at their 10-year mark, and the 2007 vintage of foreclosed homeowners is expected to have even lower returns than 2006.
     
    For the full story and to view the statistical charts, please visit CoreLogic Insights Blog at www.corelogic.com.

    ​Boomerang buyers making a gradual return

    7/27/2016 10:30:19 AM
    By Kristine Yao, CoreLogic  
     
    Next year marks seven years since the foreclosure crisis peaked in 2010, during which enough time would have passed for the black mark of foreclosure to be erased from millions of consumer credit reports.
     
    In total, 1.9 million homeowners who faced owner-occupied foreclosures between the start of the housing crisis in 2007 through 2010 will have met the seven-year period after which the Fair Credit Reporting Act requires derogatory information to be removed. By the end of 2020, another 1.2 million homeowners who lost their homes to foreclosure between 2011 and 2013 will become eligible.
     
    While millions of former homeowners reentering the buying market would have a significant impact on home sales, historical data shows a more gradual return rate for these so-called boomerang buyers, with less than half returning to homeownership even 16 years after the foreclosures were completed. Historical return rates show recent incremental volumes of 150,000 boomerang buyers returning per year, or 12,500 per month. Of the 4.4 million owner-occupied foreclosures completed since 2000, 1 million foreclosed homeowners have returned.
     
    CoreLogic property tax and sale transaction data was linked to unique consumers from which a random sample of one million individuals who underwent owner-occupied foreclosures between 2000 and 2013 were tracked over time to determine how many returned as boomerang buyers.
     
    Cumulative return rates of boomerang buyers vary by foreclosure vintage. A decade after their foreclosures, 38.5 percent of homeowners who lost their homes in 2000 returned as buyers. In comparison, only 26.3 percent of 2006 foreclosed homeowners returned at their 10-year mark, and the 2007 vintage of foreclosed homeowners is expected to have even lower returns than 2006.
     
    For the full story and to view the statistical charts, please visit CoreLogic Insights Blog at www.corelogic.com.

    ​Boomerang buyers making a gradual return

    7/27/2016 10:30:19 AM
    By Kristine Yao, CoreLogic  
     
    Next year marks seven years since the foreclosure crisis peaked in 2010, during which enough time would have passed for the black mark of foreclosure to be erased from millions of consumer credit reports.
     
    In total, 1.9 million homeowners who faced owner-occupied foreclosures between the start of the housing crisis in 2007 through 2010 will have met the seven-year period after which the Fair Credit Reporting Act requires derogatory information to be removed. By the end of 2020, another 1.2 million homeowners who lost their homes to foreclosure between 2011 and 2013 will become eligible.
     
    While millions of former homeowners reentering the buying market would have a significant impact on home sales, historical data shows a more gradual return rate for these so-called boomerang buyers, with less than half returning to homeownership even 16 years after the foreclosures were completed. Historical return rates show recent incremental volumes of 150,000 boomerang buyers returning per year, or 12,500 per month. Of the 4.4 million owner-occupied foreclosures completed since 2000, 1 million foreclosed homeowners have returned.
     
    CoreLogic property tax and sale transaction data was linked to unique consumers from which a random sample of one million individuals who underwent owner-occupied foreclosures between 2000 and 2013 were tracked over time to determine how many returned as boomerang buyers.
     
    Cumulative return rates of boomerang buyers vary by foreclosure vintage. A decade after their foreclosures, 38.5 percent of homeowners who lost their homes in 2000 returned as buyers. In comparison, only 26.3 percent of 2006 foreclosed homeowners returned at their 10-year mark, and the 2007 vintage of foreclosed homeowners is expected to have even lower returns than 2006.
     
    For the full story and to view the statistical charts, please visit CoreLogic Insights Blog at www.corelogic.com.