Key Trends in 2024 Profile of Home Buyers and Sellers: Insights from the NAR Report

Who’s Buying Homes in 2024? A Look at Demographics and Trends

The 2024 Profile of Home Buyers and Sellers by the National Association of Realtors (NAR) sheds light on significant shifts within the real estate landscape. With data spanning July 2023 to June 2024, this report provides insights into who’s buying homes, why they’re buying, and what trends are shaping the market. At Innovative Mortgage Brokers, we take pride in guiding clients through these changing dynamics, ensuring each client is informed and prepared for a successful homeownership journey. Here’s a closer look at this year’s NAR report and what it means for today’s homebuyers and sellers.

Changing Demographics of Homebuyers

One of the standout trends in this year’s report is the continuing increase in the median age of homebuyers. First-time buyers now have a median age of 38—up from 35 last year—while repeat buyers have reached a median age of 61. These shifts reflect the evolving economic landscape, where factors like rising home prices and stricter lending requirements are prompting buyers to enter the market later in life.

Additionally, first-time buyers account for just 24% of the market, marking the lowest share since NAR began collecting data in 1981. This represents a sharp decline from last year’s 32%, underscoring the unique challenges first-time buyers face in a competitive and costly housing market. At Innovative Mortgage Brokers, we work diligently to support first-time buyers with tailored mortgage solutions, guiding them through a complex landscape to help them achieve their homeownership goals.

Homebuyer Characteristics: Who’s Buying Homes Today?

The report provides further insight into the diversity among today’s homebuyers:

• Marital Status and Family Structure: Married couples make up the largest share of buyers at 62%, while single females represent 20% of the market. Single males account for 8%, and unmarried couples represent 6%.
• Children in the Home: Interestingly, 73% of recent buyers do not have children under 18 at home, marking the highest share recorded. This trend aligns with the increased age of buyers and a growing preference for flexibility in lifestyle and location.
• Multigenerational Homes: Seventeen percent of buyers are purchasing multigenerational homes, a trend driven by financial considerations and family needs. Among those, 36% cited cost savings as the primary motivation, while others purchased to support aging parents (25%) or to accommodate adult children returning home or staying longer (21% and 20%, respectively).

These trends illustrate the diverse needs of buyers in today’s market. Whether you’re looking for a multigenerational home or a property that fits your unique family structure, Innovative Mortgage Brokers can match you with a mortgage solution that aligns with your vision.

Homeownership Motivations

The desire to own a home remains a powerful motivator, with 22% of buyers identifying this as their primary reason for purchasing. Among first-time buyers, this figure jumps to 64%, reflecting a strong aspiration for stability and investment among new homeowners.

For many buyers, the shift toward homeownership is more than just a financial decision; it’s a deeply personal one. At Innovative Mortgage Brokers, we understand this, and we’re committed to providing support, guidance, and access to mortgage options that make homeownership achievable, regardless of market challenges.

Demographic Insights and Inclusivity in Home Buying

The demographic breakdown in the report reveals:

• Race and Ethnicity: The majority of buyers are White/Caucasian (83%), followed by Black/African-American (7%), Hispanic/Latino (6%), Asian/Pacific Islander (4%), and other races (3%).
• Sexual Orientation: A significant 88% of buyers identify as heterosexual, while 3% are gay or lesbian, 2% are bisexual, 1% prefer to self-describe, and 6% opted not to disclose.
• Military Background: Sixteen percent of recent buyers are veterans, while 2% are active-duty service members.

At Innovative Mortgage Brokers, we believe that homeownership should be accessible to all individuals, regardless of background. Our commitment to inclusivity means we work with diverse borrowers to provide mortgage options that are as varied as the clients we serve.

Financial Trends and Challenges Facing Buyers

Rising home prices, higher interest rates, and limited inventory have created significant hurdles for today’s homebuyers, especially for younger buyers or those entering the market for the first time. Although many buyers rely on mortgage financing to support their purchase, the required down payment and overall mortgage qualifications vary:

• Down Payments: First-time buyers made a median down payment of 9%, while repeat buyers, often using equity from a previous home, made a median down payment of 23%.
• Fixed-Rate Mortgages: A significant 64% of buyers chose fixed-rate mortgages, reflecting a desire for predictable monthly payments in a fluctuating rate environment.

Our team at Innovative Mortgage Brokers is dedicated to helping buyers access competitive rates and favorable loan terms, making homeownership accessible even in challenging economic conditions. We work with each client to explore different loan options and select the one that best meets their financial and personal needs.

The Role of Real Estate Agents and Technology

The report also highlights the critical role of real estate agents, with 88% of buyers working with agents to purchase their homes. Agents continue to provide invaluable support and expertise, particularly for first-time buyers navigating the complexities of the market. Most buyers found their agents through referrals, emphasizing the importance of trust and proven track records.

In addition to agent support, digital tools have become essential for today’s buyers. Many buyers start their search online, using platforms that offer virtual tours, mobile search capabilities, and other resources that streamline the home-buying process.

At Innovative Mortgage Brokers, we work closely with both clients and real estate agents to ensure that mortgage financing aligns with the client’s goals and timeline. Our goal is to make the financing process smooth, efficient, and transparent, enabling you to focus on finding the perfect home.

Selling Trends and Market Dynamics

For home sellers, the NAR report notes several interesting trends:

• Older Sellers: The median age of sellers has risen to 63, with many choosing to downsize, relocate, or move closer to family.
• Agent-Assisted Sales: The majority of sellers (90%) used an agent to sell their property, highlighting the ongoing demand for professional support in a competitive market.
• Selling Price and Market Time: Many sellers received 100% of their asking price, and homes spent a median of three weeks on the market, reflecting strong demand and competitive pricing.

Whether you’re buying your first home or selling your existing property, Innovative Mortgage Brokers provides solutions for every stage of homeownership. Our refinancing options, for example, are designed to make the transition seamless, helping sellers unlock equity and finance their next home with ease.

How Innovative Mortgage Brokers Can Help

At Innovative Mortgage Brokers, we recognize that every buyer and seller faces unique challenges in today’s housing market. Whether it’s navigating high-interest rates, securing down payment assistance, or understanding the specific needs of multigenerational households, our team is here to provide the guidance you need.

Our services include:

• Personalized Mortgage Solutions: We work with you to identify the best mortgage option based on your financial profile, lifestyle needs, and homeownership goals.
• Competitive Rates and Terms: We partner with a wide network of lenders, allowing us to secure competitive rates and favorable terms for our clients.
• Transparent Communication and Support: We believe in clear, consistent communication, making sure you’re informed and comfortable with every decision along the way.

Final Thoughts

The 2024 NAR report provides a comprehensive look into the current state of the real estate market, highlighting the diverse needs and motivations of today’s buyers and sellers. For those entering the market, understanding these trends can be invaluable in making informed decisions.

At Innovative Mortgage Brokers, we’re committed to supporting our clients with expertise, transparency, and personalized service. Whether you’re a first-time buyer or a seasoned homeowner, reach out to us today to learn how we can help make your homeownership dreams a reality in 2024 and beyond.