realtors accept reality that boomerang buyers will not return in large numbers.
Economic predictions follow a repeating pattern. At first economists pander to everyone's optimism bias and proffer predictions based on recent trends and dominated by wishful thinking. Later, when reality of data forces them to abandon their fantasies, economists downwardly revise their predictions, sometimes over and over again. Finally, once they've lowered their projections enough, the data finally matches their lowered expectations, and they claim prescience for their brilliant insights. When the boomerang buyer meme first appeared, projections of "experts" (usually local real estate agents or mortgage brokers) confirmed that 80% or more of former owners would buy again. "It's more than incremental business, that's for sure," adds Dan Klinger, president of K. Hovnanian American Mortgage. By 2012 more reputable, but equally over-optimistic, analysts chimed in. John Burns, a reputable OC[READ MORE]