T
he past year has been challenging for first-time homebuyers, who face high prices, higher mortgage rates, and limited inventory options. In contrast, current homeowners have had an easier time leveraging record equity to purchase their next home, often in cash. According to Jessica Lautz, deputy chief economist at the National Association of REALTORS, "The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash."

    First-time buyers are retreating from the market, with their share falling to a historic low of 24%. Prior to 2008, they comprised 40% of the market. First-time buyers face significant barriers, including high rent, student loans, and credit card debt. Those who can afford homeownership tend to be older than in the past, with a median age of 38 years old. They're also coming up with higher down payments – a median of 9%, the highest recorded since 1997.

    Cash buyers have surged to a record high, with over a quarter (26%) paying cash for their home purchase. This enables these buyers to bypass a mortgage at a time when interest rates are high. Thirty-one percent of repeat home buyers were able to pay cash for their home purchase, likely due to increased housing equity.

    Home sellers aim high and often succeed, selling their property at 100% of their asking price – the highest recorded list-to-sale median since 2002. About 27% of sellers even nabbed more than their list price. Home sellers also tend to sell quickly, typically within three weeks, due to high buyer demand and lack of housing inventory.

    Multigenerational living is gaining traction, with multigenerational buyers climbing to an all-time high of 17%. Home buyers cite cost savings, elder care, and accommodating young adults moving back home as reasons for purchasing a multigenerational home. "As home buyers encounter an unaffordable housing market, many are choosing to double up as families," Lautz says.

    For sale by owners (FSBOs) have dropped to an all-time low of 6%. Meanwhile, 90% of home sellers sold their home with the assistance of a real estate agent. FSBOs typically sell for less – a median of $380,000 versus $435,000 for agent-assisted sold homes.

    Buyers are digging deeper for higher down payments, with the median down payment among all buyers reaching 18%, the highest figure in more than 20 years. Single women remain active in the housing market, making up 20% of home sales over the past year. Newly built homes gain greater buyer attention, accounting for 15% of home sales – the highest share in about 17 years.

    Real estate agents remain a top information source for buyers and sellers alike. Eighty-six percent of buyers and 90% of sellers used an agent in their transaction. The National Association of REALTORS' consumer survey reveals that sellers and buyers value different qualities from an agent, including marketing the home to buyers, pricing it competitively, and negotiating better sales contract terms.