MORE COMPETITION FOR SANTA BARBARA HOMES AS FORMERLY DISTRESSED OWNERS RETURN TO THE MARKET
The reverberations of the collapse of the housing market in 2008 have been felt for several years. However, a new report from NAR Research suggests that many home buyers who were hit by the collapse are returning to the market. This is important for those considering selling Santa Barbara homes, as the demand will likely increase.
There are several important factors that determine when a formerly distressed owner is able to enter the market and consider investing in Santa Barbara real estate or elsewhere. Most important is the time necessary to rebuild a solid credit history. The new, stricter standards for borrowing may work against some potential buyers. Banks require more proof of credit-worthiness than they did in the bubble. Potential buyers must also save for a down payment. Finally, some formerly distressed owners do not desire to own a home again.
California has seen the largest number of buyers return to the market. Florida is a close second, with Arizona a distant third. California is projected to have over 300,000 return buyers between 2015 and 2023. Santa Barbara homes are always an attractive choice for buyers. New models for determining credit scores will take into account rent and utility payments, which can help give a clearer picture of a borrower's creditworthiness over time. It is likely that these new models will help borrowers return to the market.