Next year is going to be a great one for real estate, two pros in the sector told CNBC on Monday.
“For broker Fred Glick, it’s all about jobs, oil prices and interest rates, which translate into more money in consumers’ pockets and more confidence.
“I call it the axis of housing happiness in that you have jobs, you have low oil prices and you have low interest rates,” Glick told “Closing Bell.”
“Real estate lawyer Shari Olefson said 2015 will be the first year the whole nation recovered, with everyone getting back into the game, including those who lost their last homes to foreclosure.
“First-time buyers will probably exceed their 40 percent historic average in terms of participation, she predicted. Plus, boomers will have a big impact because of their sheer numbers, especially in regions where they plan to spend their retirement.
“On top of that, “we’re going to have those boomerang buyers who sat out the mandatory waiting period and can get back into housing,” Olefson said.”
Boomerang Buyers, a term invented by the Wall Street Journal as buying a house again after a foreclosure, are coming back into the housing market. Projected to make about 10 percent of all U.S. home purchases this year, that percentage is expected to rise in 2015 and 2016 as more of these so-called “boomerang buyers” become eligible for new loans.
Some boomerangers have to wait as little as 12 months after foreclosure, short sale, and even bankruptcy, if they had good credit before their troubles and have had no problems after the event.
Even personal bankruptcy may not be a hindrance for some loans and refinancing a mortgage is possible if the bankruptcy has not been discharged and your credit history has been good, meaning you made all timely payments to your trustee.
Bankers say, “Hey, you made a mistake.” You have been knocked to your knees, but this is America where Americans root for the underdog and change the rules so you can get back on your feet. We need your consumption.
Trusted Home Buyers wishes you Merry Christmas and Happy Holidays. All the best in the coming New Year.