Boomerang Buyers and First-Time Buyers Compete for Columbus Homes

The number of home buyers combing the Columbus real estate market is likely to increase, when you consider the trends forming in two distinct buyer groups. Here is what’s taking shape, and how it could lead to increased home buyer competition!

Boomerang Buyers Are Anxious to Own a Home Again

According to an article in USA Today, 4.7 million people have lost their homes to foreclosures or short sales since 2007. You might think this group would be sour on home ownership, but that isn’t the case at all. According to industry analysts, 70% of them will return to home ownership within eight years of their short sale or foreclosure.

This year alone, boomerang buyers could account for 10% of all home sales. Roughly 500,000 boomerang buyers will be eligible to return to the market every year from now through 2016.

Why are boomerang buyers anxious to return to home ownership? For many former homeowners, it was simple economics that drove them out of home ownership – and now it’s simple economics driving them back in. Owning a home is still cheaper than renting in many areas of the country. These former homeowners have had a taste of both home ownership and renting, and you can guess which one wins out!

If you are a boomerang buyer wondering when you might be eligible for home ownership again, take a look at my November 21 blog post for more information!

First-Time Home Buyers Increase in Number

According to industry research by Campbell Surveys, first-time home buyers accounted for 34.5% of home purchase transactions in February 2013. This is the second monthly increase in first-time home buyer purchase volume, after it posted a 4-year low in December 2012.

First-time home “lookers” were also out in force in February 2013, showing a 4-year high in window shopping. Whether or not this increased presence translates into a growing share of home sales remains to be seen. It’s possible that a sense of urgency has returned to this type of home buyer now that home prices are heading higher.

Rivaling first-time home buyers are real estate investors, who claimed 34.5% of home sale transactions in February 2013.

Be Prepared for Competition!

Whether you are a first-time Columbus home buyer or a boomerang buyer returning to home ownership, you need to be prepared! Home sellers will take advantage of growing demand with higher prices. Meanwhile, real estate investors will scoop up the least expensive homes and pay cash for them. There are still plenty of good homes for sale in Columbus at reasonable prices, but you cannot assume they will be there forever.

Let us help you succeed with your home buying goals! As your Exclusive Buyer’s Brokerage, we focus on helping Columbus home buyers! We will help you find the best home for your needs, and negotiate the best possible deal. In the meantime, download our free e-book for priceless information you won’t find anywhere else!

Contact us today for expert assistance with your home buying questions!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax