The real estate market continues to evolve, as highlighted in the National Association of Realtors (NAR) 2024 Profile of Home Buyers and Sellers.
This annual report, which has been published since 1981, offers a snapshot of home-buying and selling trends based on transactions completed between July 2023 and June 2024. Here are the key takeaways:
Decline in First-Time Home Buyers
First-time home buyers have hit a historic low of just 24% of all buyers, a significant drop from the pre-2008 norm of 40%.
Several factors may be contributing to this trend, including rising home prices and interest rates.
Notably, the median income of first-time buyers reached $97,000, while their median age climbed to an all-time high of 38. In contrast, first-time buyers in the 1980s were typically in their late 20s.
Demographics and Buyer Characteristics
– Married couples represented the largest group of home buyers at 62%.
– Single women accounted for 20% of buyers, reflecting their growing presence in the market.
– The median age of all home buyers rose to 56, up from 49 in 2023.
– A significant 19% of buyers were over the age of 60.
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How Buyers Are Searching for Homes
The way buyers search for homes continues to embrace technology:
– 69% of buyers used a mobile device or tablet during their internet search.
– Photos (41%), detailed property descriptions (39%), and floor plans (31%) were considered the most useful website features.
– Open houses, while still a tradition, were deemed useful by 23% of buyers.
On average, buyers searched for 10 weeks and viewed seven homes before making a purchase.
Notably, 21% of buyers contacted a real estate agent as their first step in the process, highlighting the value of professional guidance.
The Role of Real Estate Agents
– 88% of buyers purchased their home with the help of a real estate agent.
– Among sellers, 90% enlisted the assistance of an agent, while only 6% went the For Sale By Owner (FSBO) route.
– 40% of buyers found their agent through a referral from friends or family, and a striking 77% of buyers only interviewed one agent before making their choice.
Home Features and Preferences
– 75% of homes purchased were single-family detached properties, while 7% were townhouses or row homes.
– The average home had 3 bedrooms, 2 bathroom, and spanned 1,900 square feet.
– Buyers moved a median distance of 20 miles, often seeking better amenities, school districts, or proximity to work.
– 15% of home buyers purchased a new construction home.
Challenges for First-Time Buyers
Understanding the home-buying process and navigating the steps to closing remained significant hurdles for many first-time buyers. This underscores the importance of working with experienced agents who can demystify the process and provide tailored guidance.
Seller Trends
Homeowners are holding onto their properties longer, with the median tenure rising to 10 years, compared to just 6 years between 2000 and 2008. Sellers, like buyers, overwhelmingly turned to agents for assistance, with 90% of transactions involving a professional’s help.
Final Thoughts
This year’s NAR Profile highlights shifting dynamics in the real estate market, from the decline in first-time home buyers to the growing reliance on technology during the home search process. For buyers and sellers alike, partnering with a knowledgeable real estate agent remains a critical component of a successful transaction.
If you’re considering buying or selling a home, now is the time to connect with an experienced Realtor who can guide you through today’s competitive market.