Who's Buying and Selling a home today?

Key Insights from the 2024 NAR Profile of Home Buyers and Sellers

The National Association of REALTORS® (NAR) recently released its 2024 Profile of Home Buyers and Sellers, shedding light on the latest trends and behaviors shaping the real estate market. Whether you’re a buyer, seller, or investor, these insights can help you make informed decisions in today’s dynamic housing landscape.

1. Who’s Buying Homes?

• First-Time Buyers Decline: First-time buyers now make up just 24% of the market—the lowest share since 1981.

• Aging Buyers: The median age of first-time buyers rose to 38 years, while repeat buyers increased to 61 years.

• Demographics: Married couples dominate at 62%, with single females accounting for 20% of buyers.

• Multigenerational Homes: 17% of buyers purchased homes to accommodate aging parents or adult children moving back home.

Key Takeaway: Tailoring strategies for first-time buyers and multigenerational households can unlock new opportunities.

2. What Are Buyers Looking For?

• New vs. Existing Homes: 15% opted for new builds to avoid renovations, while 85% chose existing homes for better value.

• Neighborhood Priorities: Buyers prioritize neighborhood quality (59%), proximity to family and friends (45%), and affordability (36%).

• Online Search Dominates: 43% started their home search online, and 86% used a real estate agent for guidance.

Key Takeaway: Highlight online listings, neighborhood amenities, and move-in-ready features to attract today’s buyers.

3. Financing Trends

• Cash Buyers on the Rise: 26% of purchases were made in cash—the highest ever recorded.

• Loans Still Popular for First-Time Buyers: 91% financed their homes, favoring FHA and VA loans.

• Savings Are Crucial: 49% used savings, and 25% relied on gifts or loans from relatives for down payments.

Key Takeaway: Offer financing tips and highlight properties suited for both cash buyers and loan-dependent buyers.

4. Seller Behavior

• Sellers Are Older: The median seller age hit 63 years—the highest on record.

• Quick Sales: Homes sold in a median of 3 weeks, with sellers receiving 100% of their asking price.

• Repeat Agent Use: 66% used agents they had worked with before or were referred by someone they trust.

Key Takeaway: Build long-term relationships and emphasize quick sales at competitive prices to attract sellers.

5. FSBO (For Sale by Owner) Challenges

• FSBO sales dropped to 6%, a historical low.

• Challenges include pricing the home correctly (17%) and navigating paperwork (10%).

• FSBO homes sold at a median of $380,000, lower than the overall median of $435,000.

Key Takeaway: Position yourself as the trusted expert to simplify the selling process and maximize profits.

What This Means for You The real estate market continues to evolve, and understanding these trends is crucial. Whether you're a buyer navigating financing options or a seller planning your next move, the insights from NAR can help you make strategic decisions. This report is a national survey and therefore may not completely represent your specific neighborhood and price range. Please contact Herb for a consultation for your specific needs.