As you can imagine, the number of bankruptcy filings nationwide is increased in times of economic distress. In 2010, 1.53 million Americans filed for bankruptcy, as many families had to deal with job losses, falling home values, and aggressive creditors following the economic recession and 2008 stock market crash. Employers were going out of business or cutting employees while trying to stay afloat. This caused the largest amount of filings since the overhaul of the Bankruptcy Code in 2005.
This year marks seven years since that large rise in bankruptcy filings. Over the next few years, around six million Americans will have their bankruptcies fall of their credit reports. There is speculation that this could send a large flood of home buyers into the housing market.
The Wall Street Journal notes that credit scores reached a record high this spring. Credit scores should continue to improve with the large numbers of bankruptcies falling off consumers’ credit reports, and this could lead more consumers entering the housing market. Nationwide, the housing market is very competitive. Home prices continue to increase as inventory of homes drops. According to many experts, this trend will not let up any time soon.
In addition to the rising credit scores, there are other reasons that the home buyer market will continue to boom. First, United States citizenship applications have been on the rise. According to the U.S. Census Bureau, immigrants who are not citizens have a home ownership rate of 39.3%, but the percentage of naturalized citizens owning a home nearly doubles to 69.7%. Additionally, a recent report from the Ellie Mae Millennial Tracker shows that given inventory, Millennials are ready and willing to be home buyers. Both these situations could lead to an increase in first time home buyers around the country.
The attorneys at Bond and Botes want to help you get rid of debt and start the road to rebuild your credit. Please schedule a free consultation if you would like to discuss your finances with an experienced attorney.
Kathryn Davis is an attorney at the Bond & Botes Law Offices in Huntsville and Decatur, Alabama. She holds a Bachelor of Arts from Auburn University, and a Juris Doctorate from Samford University, Cumberland School of Law. She is passionate about utilizing the bankruptcy process to help clients navigate through what is usually some of the lowest points in their lives. Read her full bio here.