According to The National Association of REALTORS® (NAR), the "Profile of Home Buyers and Sellers" report since 1981 offers an in-depth analysis of home buying and selling trends over the past year. The 2024 report reveals pivotal trends shaping the real estate market today.
1. First-Time Home Buyers
First-time buyers have reached a historical low, facing inventory shortages, high down payment challenges, and debt from rent, student loans, and other sources. Finding a suitable property remains the toughest step for these buyers.
2. Rising Household Income
Household income among home buyers has climbed to new heights, with higher interest rates and rising home prices pushing income needs upward. In the last two years, incomes for first-time buyers have risen by an average of $26,000.
3. Median Age of Buyers
The median age of home buyers is at an all-time high, as many save longer to buy in today’s competitive market. Both first-time and repeat buyers are older on average, with some repeat buyers moving after retirement.
4. Families with Children Under 18
Buyers with children under 18 represent only 27% of recent buyers—a historic low. The trend toward older buyers and delayed family planning has influenced this demographic.
5. Growing Interest in Multigenerational Homes
Multigenerational living has grown to 17% of buyers, reflecting a shift toward larger homes for extended families or cost-saving arrangements as housing affordability declines.
6. Typical Down Payments on the Rise
Down payments are the highest since 1997 for first-time buyers and 2003 for repeat buyers, as homeowners leverage increased home equity for larger down payments and lower monthly mortgage payments.
7. Surge in All-Cash Purchases
All-cash home purchases are at a record high of 26%, partly due to the use of inheritance and financial assets among first-time buyers and home equity for repeat buyers.
8. Increased Urban Purchases
City living is back in demand, with 16% of buyers moving to urban areas—the highest in a decade. Most buyers still prefer suburbs and small towns, but urban areas offer dynamic communities and amenities beyond workplace proximity.
9. Buyers’ Use of Real Estate Agents
A significant 88% of home buyers rely on real estate agents for support, from finding the right property to negotiating deals. Real estate agents play an essential role in helping buyers make informed decisions.
10. Sellers’ Use of Agents
For sellers, 90% used an agent, favoring professional expertise for pricing, marketing, and finding buyers. FSBO (For Sale By Owner) sales are at a historic low of 6%.
These trends underscore the evolving dynamics of the real estate market, from home affordability challenges to rising demand for multigenerational housing and professional guidance in transactions. Source: The National Association of REALTORS®
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