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by: Brian Winthrop, Citizens
Here are the key insights from the National Association of REALTORS® (NAR) 2024 "Profile of Home Buyers and Sellers":
Cash Buyers Increasing: A record 26% of home sales were all-cash transactions, with 31% of repeat buyers opting for this method, driven by rising home equity.
Older First-Time Buyers: The median age of first-time buyers has risen to 38, the oldest since 1981. Many are relying on gifts or loans from relatives (25%) or tapping into financial assets like stocks or 401ks (20%). They are also making the largest down payments in nearly 30 years (9%).
Multi-Generational Living Growth: 17% of households now live with multiple generations under one roof, with the primary reason being cost savings.
Single Women Leading Purchases: Single women accounted for 24% of home purchases, outpacing single men at 11%. This trend is linked to a decrease in marriage rates.
Changing Buyer Priorities: Quality of the neighborhood (59%) and proximity to friends and family (45%) are now the top considerations for buyers, while convenience to work has decreased significantly from 52% in 2014 to 34%.
Mortgage Interest Rates Move Little
Interest rates are largely influenced by movements in the bond market, with recent bond fluctuations driven by political headlines rather than significant economic reports.
For 2024, U.S. home sales dropped to their lowest levels since 1995, totaling just 4.06 million, largely due to high mortgage rates consistently over 7%.
Building permits declined by 3.1% year-over-year, with a slight 0.7% decrease from November. Single-family permits saw a small increase of 1.6%. However, housing starts rose by 15.8% from November, with single-family starts also seeing a 3.3% increase. On the other hand, housing completions dropped 4.8% from November, and single-family completions were down by 7.4%.
These insights reflect evolving trends in the housing market and highlight shifts in buyer demographics and preferences.
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