Boomerang buyers ready for a shot at home ownership


By DON FENLEY

Boomerrang buyersThe first wave of 3,587 Kingsport-Bristol homeowners who lost their homes to foreclosure or short sale during the foreclosure crisis are now past the seven-year window they conservatively needed to repair their credit and qualify to buy a home. Begging the question is have they met the requirements and where will they buy?

The Boomerang Buyer examination is the most current housing market trend heads up from the folks at RealtyTrac. In a report released today, the firm points to 7.3 million of these potential buyers nationwide. More waves of these potential buyers will be moving past that seven-year window over the next eight years corresponding to the eight years of above-normal foreclosure activity from 2007 to 2014.

RealtyTrac analyzed foreclosure, affordability and demographic data to provide predictions of when and where these boomerang buyers are most likely to materialize. The report didn’t include the three-county Johnson City MSA since it was below the population threshold.

The report shows the 2015-2022 Boomerang Buyer potential as a percentage of total housing units Kingsport-Bristol is  2.44%. It’s  6.61% in Chattanooga. Nashville’s percentage is 6.59% and in Knoxville it’s 5.4%.

Kingsport-Bristol’s housing affordability – as measured by the estimated payment for a median-priced home for the median household income – is 18.29%.

Generation X and Baby Boomers as a percentage of the total population is 45.51%.  In Chattanooga it’s 42%. In Knoxville it’s 41.47% and in Nashville-Davidson it’s 40.48%

The 2007-2013 percentage growth of Generation X and Baby Boomer generations in Kingsport-Bristol was  6.9%. Chattanooga was also second in this metric with 6.83%. Both Knoxville and Nashville had increases of less than 2% in the metric.

Methodology: The millennial generation is defined as someone who was born between the years 1977 to 1992. In 2013 millennials would be between the ages of 21 to 36. In 2007 the millennial generation was between the ages of 15 to 30. The generation X generation is defined as someone who was born between the years 1965 to 1976. In 2013 generation xers would be between the ages of 37 to 48. In 2007 generation xers were between the ages of 31 to 42. The baby boomer generation is defined as someone who was born between the years 1945 to 1964. In 2013 baby boomers would be between the ages of 49 to 68. In 2007 the baby boomers were between the ages of 43 to 62. For a more detailed methodology please contact us.

 

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