The 2024 Profile of Home Buyers and Sellers

The National Association of REALTORS® (NAR) has released its annual Profile of Home Buyers and Sellers, providing a detailed look into the behavior and trends shaping the real estate market over the past year. Here are the standout findings from the report.

The Evolving Demographics of Buyers and Sellers

Aging Buyers and Sellers: The median age of first-time home buyers reached a record 38 years, while repeat buyers hit a median of 61 years. Similarly, the typical seller's age rose to 63, the highest ever recorded.
Marital Status and Household Makeup: Married couples accounted for 62% of all buyers, a slight increase from last year, while single female buyers represented 20%. Interestingly, 17% of buyers purchased multi-generational homes, reflecting growing preferences for shared living arrangements for cost savings and elder care.

First-Time Buyers at Historic Lows

First-time buyers made up only 24% of the market, marking the lowest share since NAR began tracking this data in 1981. Key challenges included rising home prices, a 7.02% average mortgage rate, and increased downpayment requirements.

The Home Search Process in 2024

Technology at the Forefront: A significant 43% of buyers began their search online, while 69% used mobile devices during their home hunt. Virtual tours and floor plans remain critical tools for buyers.
Agent Involvement: Real estate agents were instrumental in 88% of home purchases, reflecting their value in navigating a challenging market. First-time buyers particularly appreciated agent assistance in understanding the buying process.

Financing Challenges and Trends

Downpayments on the Rise: The typical downpayment for first-time buyers increased to 9%, the highest since 1997, while repeat buyers contributed a median 23%, the highest since 2003.
All-Cash Purchases Soar: Cash purchases made up 26% of transactions, an all-time high, showcasing the increasing bifurcation between buyers with existing equity and those struggling to break into the market.

Sellers: Quick Sales and High Satisfaction

Fast Sales: Homes sold at a median of 100% of their asking price within three weeks.
Agent Usage Dominates: A record 90% of sellers worked with real estate agents, with satisfaction rates remaining high. Agents played a critical role in marketing, competitive pricing, and timely sales.

Takeaways for Real Estate Professionals

This year's findings highlight the ongoing affordability crisis, changing demographics, and increasing reliance on technology. As a real estate professional, staying attuned to these trends and adapting to shifting consumer needs will be essential for success in 2024 and beyond.