Buyer Competition Boosts California Home Sales

They say competition is good for a free market economy. It’s certainly the case for Livermore real estate! Competition is heating up between first-time home buyers and the growing number of “boomerang buyers.”  How intense will it get? Let’s take a look at the facts!

According to industry surveys, first-time home buyers represented 34.5% of all home purchases during February 2013. Just a couple months prior, first-time buyers posted a four-year low in their market presence.  2013 has found first-time buyers returning to the market in growing numbers.

First-time buyers are still contending with real estate investors for homes in the most affordable price ranges. Investors claimed 34.5% of home purchases during February 2013, echoing the volume of first-time buyers.

To this mix, we now add the “boomerang buyers,” who are a force to be reckoned with.  The term “boomerang buyer” refers to a former homeowner who lost their property during the housing downturn, but who is now eligible to apply for a new mortgage. These types of buyers have completed their “penalty box” period, and so long as their credit score is good, they can start all over.

4.7 million people have lost homes to foreclosures or short sales since 2007, and industry analysts say that 70% of them will return to home ownership over the next several years! About 500,000 boomerang buyers will be eligible to return to the real estate market every year from now through 2016.

What’s more, most of these former homeowners want to own a home again. Per the USA article, this is being proven already, with boomerang buyers actively purchasing homes throughout California.

With home buyer numbers like these, home demand in California is likely to remain strong. Eventually, higher prices will draw out more home sellers and ease inventory pains. We will move towards a balanced market  once inventory improves. Until then, it’s every buyer for themselves!

Remember that the Livermore real estate market is always changing, and local market conditions will vary by each neighborhood. This is why nothing should be taken for granted when buying a Livermore home!

Are you ready to become a homeowner? Let me help you! I will refer you to reputable mortgage lenders in the area, and I can help you find the ideal home for your needs and budget. Please feel welcome to contact me for the latest home sale details in Livermore, Pleasanton or Dublin. I’ll answer all of your questions, and provide you with expert guidance for success!

John Kurtzer
Your Livermore Real Estate Expert
RE/MAX Accord

Livermore Real Estate
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