T
he National Association of Realtors' 2024 Profile of Home Buyers and Sellers report reveals a significant shift in the US housing market. First-time homebuyers now account for just 24% of transactions, down from 32% last year, while the average age of buyers has increased to 56 years overall (up from 49) and 61 years for repeat buyers (up from 58). This trend is attributed to high home prices, mortgage rates, and low inventory making it difficult for first-time buyers to enter the market.

    According to NAR Deputy Chief Economist Jessica Lautz, "The US housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash." High-income earners are more likely to be able to afford homes, while those who have built up home equity can leverage it for cash purchases or substantial down payments.

    The report highlights a median household income of $108,800 for all homebuyers in 2023, up from $107,000 the previous year. Married couples made up 62% of buyers, with single female buyers increasing to 20%. In terms of diversity, 83% of recent buyers identified as White or Caucasian.

    Multigenerational home purchases rose to 17%, driven by factors like cost savings and caregiving for aging parents. Real estate agents played a vital role in the buying process, with 86% of buyers using their services and nearly 90% reporting satisfaction with their agent's responsiveness and knowledge.

    Median down payments were 18% for all buyers, 9% for first-time buyers, and 23% for repeat buyers. First-time buyers relied mainly on savings (69%), while 26% paid in cash. The typical seller's age rose to 63 years, with 69% of sellers being married couples.

    Lautz noted that family connections are increasingly influencing real estate decisions, with proximity to friends and family becoming a primary reason for selling or buying a home. Most sellers (90%) used an agent, up from 89%, and the majority would recommend their agent for future transactions.