Navigating Today’s Housing Market: Insights from the 2024 NAR Profile of Home Buyers and Sellers
The past year has presented unique challenges for homebuyers, especially first-time buyers, who have faced rising home prices, higher mortgage rates, and limited inventory. However, recent trends show a glimmer of improvement in inventory levels. On the flip side, home sellers have continued to benefit from strong equity positions, often leveraging their profits to make cash purchases on their next property.
According to Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of REALTORS® (NAR), the U.S. housing market has become distinctly divided: “First-time buyers face high home prices, high mortgage interest rates, and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers. Meanwhile, current homeowners can more easily make housing trades using built-up housing equity for cash purchases or large down payments on dream homes.”
Here’s a closer look at some key findings from the 2024 NAR Profile of Home Buyers and Sellers, which analyzed transactions completed between July 2023 and June 2024.
First-Time Buyers Retreat Amid Challenges
First-time buyers now represent just 24% of the market, a historic low compared to 40% before 2008. With no equity to leverage, many struggle to save for down payments due to high rents, student loans, and credit card debt. The median age of first-time buyers has climbed to 38—well above the late 20s typical in the 1980s—and they’re putting down a median of 9%, the highest since 1997. About 25% of these buyers relied on financial assistance from family or friends to make their purchase.
Cash Buyers Surge to New Highs
More buyers than ever—26%—paid cash for their homes in the past year, bypassing mortgage loans as interest rates exceeded 7%. Among repeat buyers, 31% used cash for their purchases, a reflection of the significant equity gains many homeowners have experienced.
Sellers Reap the Rewards of a Tight Market
Home sellers have continued to see strong returns, with properties typically selling for 100% of the asking price, the highest median since 2002. Nearly 27% of sellers exceeded their asking price, and most homes sold quickly, within three weeks. Additionally, only 24% of sellers offered incentives like covering closing costs—down from 33% the year prior.
Multigenerational Living on the Rise
With housing affordability continuing to pose challenges, multigenerational homes now make up 17% of purchases, the highest on record. Families cite cost savings, elder care, and young adults returning home as driving factors behind this trend. “As home buyers encounter an unaffordable housing market, many are choosing to double up as families,” says Lautz.
FSBO Sales Drop to Record Lows
For-sale-by-owner (FSBO) transactions comprised just 6% of all home sales, a record low. Meanwhile, 90% of sellers used a real estate agent, benefiting from wider market exposure and competitive pricing strategies. FSBO homes typically sold for less, with a median price of $380,000 compared to $435,000 for agent-assisted sales.
Buyers Invest in Larger Down Payments
In 2024, the median down payment reached 18%, the highest in over two decades. First-time buyers contributed a median of 9%, while repeat buyers averaged 23%, reflecting their greater financial leverage.
Single Women Lead Among SINK Buyers
Single-income, no-kids households (SINKs) have emerged as a significant segment of the market, with single women accounting for 20% of home purchases, compared to just 8% for single men. Meanwhile, families with children under 18 are buying less, with a record 73% of recent buyers having no children in their household.
Demand for New Homes Grows
Newly constructed homes accounted for 15% of sales, the highest share in 17 years. Buyers cited a desire to avoid renovations, ensure modern amenities, and customize features as top reasons for choosing new construction.
The Value of Real Estate Agents
Despite the wealth of online tools available, real estate agents remain indispensable. Eighty-six percent of buyers and 90% of sellers relied on agents for their transactions, valuing their expertise in pricing, marketing, and navigating the process.
What Sellers Want from Agents
- Marketing the home to buyers: 22%
- Pricing the home competitively: 20%
- Selling within a specific timeframe: 18%
- Identifying ways to increase resale value: 15%
- Finding a buyer: 13%
What Buyers Want from Agents
- Identifying unnoticed property features/faults: 55%
- Explaining the process: 53%
- Negotiating better contract terms: 44%
- Providing service provider recommendations: 43%
The 2024 housing market remains a complex landscape, but these insights can help buyers and sellers make informed decisions. Whether you’re navigating your first purchase or planning your next move, a trusted real estate professional can make all the difference.
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