November 29th 2024.
According to the latest report from the National Association of Realtors, there have been some notable changes in the demographics of homebuyers in 2024. The data shows a significant decrease in the number of first-time buyers, who now only make up 24% of the market. This is quite a drop from last year's figures and is the lowest share recorded since 1981 when the association first started collecting this data.
Interestingly, the median age of first-time buyers has also increased to 38, which is the highest it has ever been. On the other hand, the median age of repeat buyers has also gone up, reaching 61 years old. These trends highlight some of the challenges faced by potential homebuyers in today's real estate market. With rising prices and limited availability, it's becoming increasingly difficult for first-time buyers to enter the market.
In fact, the overall median age of homebuyers has also hit a record high of 56, up from 49 in 2023. This shows that homebuyers, in general, are getting older and it's taking them longer to make their first purchase. Along with the increase in age, there has also been a decrease in the number of first-time buyers making purchases. This year's data shows that only 24% of home purchases were made by first-time buyers, compared to 32% last year.
One of the reasons for this decline in first-time buyers is the struggle to make a down payment. Many are turning to their parents or relatives for financial assistance, with a Redfin survey revealing that 36% of potential millennial or Gen Z homebuyers use a cash gift from family to help with their down payment. In addition, 16% plan to use an inheritance to fund their purchase.
The report also provides some interesting insights into the homebuyer demographics. It shows that 62% of homebuyers were married couples, while 20% were single females, 8% were single males, and 6% were unmarried couples. Additionally, 73% of homebuyers did not have a child under the age of 18, which is the highest share recorded. It's also worth noting that 17% of homebuyers purchased a multigenerational home for various reasons, such as cost savings, taking care of aging parents, or having children or relatives over the age of 18 moving back home.
When it comes to finances, the report reveals that the median down payment for all homebuyers was 18%, with first-time buyers putting down 9%. This shows that many homebuyers are still struggling to save for a down payment, especially in today's competitive market. Additionally, only 6% of all home sales were for sale-by-owner, which is a historical low. And out of those sales, 38% were made to a relative, friend, or neighbor. Interestingly, for-sale-by-owner homes typically sell for less, with a median price of $380,000, compared to the median sales price of $435,000 for all homes.
In conclusion, it's clear that the real estate market is facing some challenges, especially for first-time buyers. With increasing prices and limited availability, it's becoming more difficult for them to make their first purchase. However, the data also shows that most homebuyers are using a real estate agent, indicating the importance of having professional help in navigating the market.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
