The National Association of Realtors (NAR) has unveiled its 2024 Buyer-Seller Profile, highlighting evolving real estate trends. This report reveals key demographic shifts and changing buyer preferences influenced by economic challenges. Here are the top 10 findings, essential for real estate professionals and buyers alike:
First-Time Buyers Hit Record Low
The proportion of first-time buyers has reached a record low of 24%, down from 32% last year. High housing costs and rising mortgage rates are the primary barriers for younger buyers, many of whom are finding homeownership increasingly out of reach. As a result, entry into the market is delayed, impacting overall demand.
Increasing Age of Home Buyers
The average age of home buyers has climbed, with first-time buyers now at a median age of 38 (up from 35 last year) and repeat buyers at 61 (up from 58). The overall median age has reached 56, showing that older buyers—often with equity from previous homes—are playing a more dominant role in the market.
Buyer-Seller Profile: Growing Demand for Multigenerational Homes
In 2024, 17% of buyers purchased multigenerational homes, reflecting a trend where extended families seek shared spaces. Many are motivated by the need to care for aging family members or support adult children, resulting in a demand for homes with adaptable spaces.
Buyer-Seller Profile: Rise in Cash Purchases
A significant 26% of all transactions were cash purchases, a high driven by older buyers and investors who bypass mortgage rates by using available equity or investment funds. Cash buyers have an advantage in today’s competitive market, allowing them to secure properties without the constraints of financing.
Increased Popularity of Smaller Homes
As buyers grapple with affordability, many are choosing smaller homes that offer lower maintenance costs and a smaller footprint. This trend is particularly popular among retirees and first-time buyers who are looking to reduce costs while still investing in real estate.
Longer Tenure Before Selling
Sellers have owned their homes for an average of 13 years, a notable increase from the traditional 10-year tenure. This shift is likely influenced by higher housing costs, making homeowners more inclined to stay put and invest in renovations rather than move.
Buyer-Seller Profile: Reduced Distances in Moves
Buyers are moving shorter distances, with many remaining within their existing city or state. This trend highlights the influence of remote work, which allows greater flexibility in location while maintaining proximity to family and community networks.
Lower Preference for Newly Built Homes
Rising costs for new construction have made previously owned homes a more attractive option for buyers. Demand has shifted to existing homes offering better value per square foot amid high-interest financing limits.
Buyer-Seller Profile: Higher Mortgage Rates as a Barrier
Elevated mortgage rates remain a significant hurdle, limiting many buyers’ purchasing power and discouraging some from entering the market. For younger buyers without significant savings, this means adjusting their expectations to align with more affordable housing options.
Digital Tools in the Buyer’s Journey
The digital revolution in real estate continues, with buyers increasingly relying on virtual tours, online listings, and remote consultations to streamline their search. This trend highlights the importance of tech-savvy real estate agents who can provide a seamless online experience for buyers.
Partner with Scout Realty for 2024 Market Success!
Discover what today’s buyers and sellers are looking for with Scout Realty! Let our expert team guide you through the 2024 market trends to make your real estate journey a success. Contact us today to get started!
.png)