Study: Former owners of California’s foreclosed homes re-entering market

California had the largest share of the nearly 9.3 million U.S. owners who lost their homes in the housing crisis, and it is expected to have the biggest portion of those who have or will become buyers again in the coming years.

Nearly a million formerly distressed homeowners likely have returned as buyers and purchased a home again, the National Association of Realtors said Monday. And another 1.5 million such former owners are expected to buy again in the next five years.

In its analysis, the association estimated that about one in seven of those returning buyers would purchase in California, the most of any state. That is roughly the same proportion of the nation’s distressed homeowners who had resided in the Golden State.

The association estimates that nearly 1.7 million Californians lost homes to foreclosures or short sales from 2006 to 2014.

“The deep wounds inflicted on the housing market during the downturn are finally beginning to heal as distressed sales continue to decline and home prices in some parts of the country have bounced back to their near-peak levels,” said Lawrence Yun, the association’s chief economist.

Borrowers with restored credit will likely have both the ability and desire to own again, the association said. However, millions more with lower-quality credit won’t be able to re-enter the housing market in the coming decade.