They’re called boomerang borrowers, and they could be changing the housing market in the coming months and years.

The timeframe for borrowers who were significantly hit after the Great Recession between 2007 and 2010 to improve their credit score is about the happen, opening the door for a lot of consumers to re-enter the housing market.

Foreclosures, short sales, and bankruptcies remain on a credit report for seven years, which means these items are due to fall off the credit files of 2.5 million consumers by June 2017, the largest of the group over that time frame.

With millions of borrowers coming back into the housing market, should this be the time to sell?

Consider low inventory.  There is a shortage of homes for sale in many markets throughout the country in relation to buyer demand.  This is economics 101 and happens to create a highly desirable atmosphere for sellers to obtain the best possible sale price and terms.  According to Redfin, buyer demand rose by 13.3 percent over the month in September, it’s highest level in three-plus years.  We’ve seen buyer demand gain momentum since Labor Day, when a pop of fresh listings hit the market.

Home prices are on the rise after several years of dealing with distressed and foreclosed inventory.  As of August 2016, foreclosure inventory included only 0.9 percent of all homes with a mortgage.  As foreclosures drop, home values rise, which could mean higher appreciation for home owners.

Low interest rates hovering around the 3.5 to 3.7 percent range make the cost of borrowing money extremely attractive, especially for those boomerang borrowers who are re-entering the market with now above average credit.  Modern day loan programs offer a wide variety of options to buyers at various price points and stages to purchase property, so you know that when you accept an offer, the loan process isn’t going to diminish on your buyer, thus securing your sale.

Chances are, it’s been a while since you’ve sold your home—at least 7-10 years.  Predictive analytics help optimize buyer searches.  Social Media marketing brings visibility to a whole new level.  Drones and video tours help create powerful story telling campaigns.  All done to attract buyers across the market and secure sales.  Welcome to modern day real estate!

Make yourself ready for boomerang borrowers by preparing your home to show in the best light possible.  Talk with one of our real estate professionals if you’re thinking of selling your home and find out what they can do for you.

Two demographics influencing the housing market are baby boomers and fist-time buyers plagued by student loan debt. Both groups are leaving stagnant markets and low turnovers.

Baby boomers themselves control about two-thirds of the nation’s aggregate home equity, which computes to about $8 trillion. Whether they decide to move from their current place, downsize or age in place, the cumulative impact of their decisions on mortgage demand, housing options to Millennials and other aspiring homeowners will be substantial.

In a recent survey by Freddie Mac, 63 percent of respondents age 55 and over prefer to age in place, which computes to 42 million homeowners spread out across the entire 55+ demographic. These numbers suggest baby boomers’ housing decisions over the next few years “will take our market to brand new places.” says Freddie Mac Economist Sean Becketti.

Not only are baby boomers staying put, so are Millennials buried in student debt. Nearly three-quarters of people who are repaying student loans say their debt is hindering them from buying a home, according to surveys released by the nonprofit American Student Assistance.

More staggeringly, nearly half of those surveyed said their debt is expected to delay their home buying for at least five more years.

The housing market feels these affects keenly, as the homeownership rate among the 35-and-younger crowd has plummeted from 44 percent at the height of the housing boom to 34 percent today.