Is A New Real Estate Purchase Boom On Its Way?

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on Oct 22 in BestTransactionFunding

Analysts are predicting a massive new wave of real estate purchases ahead. Is your real estate wholesaling business ready?

Boomerang Home Buyers

In addition to new millennial buyers, move up buyers, and downsizing boomers, RealtyTrac estimates a 7.3 million strong wave of boomerang home buyers is beginning to hit the US housing market in 2015. This activity is expected to peak in 2018, and flow through 2022. These are the home buyers winged by the foreclosure crisis, who are now returning to the market. A TransUnion report estimates 700,000 of those negatively impacted by the crisis will already qualify for new home loans in 2015. 2.2 million should be eligible to buy again within the next 5 years. California, Florida, Arizona, and Michigan, are expected to hold the highest concentrations of boomerang buyers.

There are several other factors likely to drive robust purchase activity ahead too…

Refinances are Dead

Freddie Mac has projected that mortgage refinance activity will have fallen over 70% to a new low by 2016. Even though we haven’t experienced a dramatic fed rate hike spree yet, they will have to increase by double just to get back to 2009 territory. With consumers shunning student debt and credit card debt, big banks and lenders are going to desperately need purchase mortgage loans to stay alive.

This will certainly make lenders more aggressive about breaking down underwriting barriers and making new loans. With homeownership are horrible lows, and housing and lending so important to the national economy we shouldn’t be surprised if the government rolls out a variety of new incentives to drive purchase activity to bolster and prop up the economy either.

Summary

With new construction levels low over the past few years, and inventory still tight, a new buyer boom is likely to give property values a significant lift too. Those real estate wholesalers armed with transactional funding, and able to act quickly, could benefit from a great boost to deal volume ahead.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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