Sam Gendusa February 6, 2013

According to Lawrence Yun, an economist for the National Association of Realtors, things are looking up for those looking to purchase a home in 2013. He is quoted as saying, “Rising home prices and a gradual uptrend in mortgage interest rates will offset improvements in family income, but 2013 likely will be the third best on record in terms of household buying power.”

What’s interesting is that many of those in the market for a new home are the very same folks that got ousted from their previous home (i.e. they were foreclosed upon). You see, when a foreclosure occurs, the holder of the mortgage on the house is not eligible for a new mortgage for three years following the foreclosure. Well, it’s 2012 now, roughly three years after the dust settled on many people’s foreclosures. And now they are looking to get back in the real estate game.

The San Francisco Chronicle quotes California mortgage banker Chris Apodaca summing up the situation:

“It's an interesting phenomenon because three or four years ago these people were losing their homes. Now they're out shopping for a new home. It wasn't swift and sweeping legislation that did it, simply a matter of perseverance. These folks waited three years and now they can buy again.”

Of course, that doesn’t mean it is a cakewalk for those wishing to own a home again. It is harder to qualify for a loan now for a number of reasons, not the least of which is the fact that the entire country is still trying to climb out of the hole created the last time people got mortgages too easily.

Still, the influx of new buyers can’t’ hurt anything in a real estate market that is trying to shock itself back to life. So it may be that the real estate industry recovers by imitating the phoenix, using what was destroyed to rebuild.

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