7 Home Buyer & Seller Market Trends to Watch: Highlights from the NAR 2024 Profile of Home Buyers and Sellers
The real estate world is a wild ride, and just when you think you've got it figured out, BOOM—new trends emerge, leaving us all scrambling to keep up. If you've been wondering what’s happening in the market, fear not! The National Association of Realtors (NAR) has blessed us with the 2024 Profile of Home Buyers and Sellers, packed with juicy stats and eye-opening trends based on transactions from July 2023 to June 2024. So, let’s dive into the top seven takeaways, dissect them, and—of course—have a little fun along the way.
1. Sellers are Basically Wizards Now: 100% Sale-to-List Price Ratio
Let’s just take a moment to acknowledge the sheer power of sellers in this market. The median sale-to-list price ratio hit 100%—the highest recorded in 22 years. Translation? Sellers are listing their homes, and buyers are saying, "Yes, sir, may I have another?" without even blinking.
Gone are the days of lowballing and waiting for desperate counteroffers. If a house is priced right, it’s selling for full price, no haggling required. This means sellers are wielding their magic wands (or, you know, their listing agents) and making top dollar. For buyers? It’s time to get serious—no more playing the "let’s see if they’ll take $50K less" game. Spoiler alert: they won’t.
2. All-Cash Buyers are Taking Over: 26% of Home Purchases Were in Cash
Cash is king, and in 2024, that throne is looking pretty solid. More than a quarter (26%) of home buyers paid all cash, marking an all-time high. Who are these people, and what do they do for a living? If you’re feeling a little jealous, you’re not alone.
This surge in cash purchases is a double-edged sword. For sellers, it means smoother transactions, no financing hiccups, and fewer delays. For buyers relying on mortgages, it means stiffer competition and the sinking realization that no matter how strong your pre-approval letter is, cash buyers are often getting first dibs.
3. First-Time Home Buyers are Endangered: Their Share Fell to 24%—a Historic Low
First-time home buyers are struggling more than ever, with their market share dropping to a historic low of 24%. Let’s be real—it’s tough out there. Skyrocketing prices, high interest rates, and ruthless competition have made it harder for newbies to snag their dream homes.
Many first-time buyers are getting priced out by deep-pocketed repeat buyers and investors. If you’re a first-timer, your best strategy is to come in prepared—strong financing, flexibility, and a dash of patience will go a long way. And maybe consider befriending a rich uncle?
4. Multigenerational Living is Booming: 17% of Home Purchases Were for Multigenerational Households
Grandma’s moving in, the adult kids are back, and suddenly, the house feels like a sitcom waiting to happen. Multigenerational households made up 17% of all home purchases, the highest we’ve ever seen.
Why? A mix of affordability, cultural preferences, and the realization that maybe living together isn’t so bad after all. This trend is pushing demand for larger homes with dual living spaces, separate entrances, and extra bathrooms (because no one wants to share a sink with a teenager).
5. For Sale By Owner (FSBO) is Still a Tough Gig: Only 6% of Transactions Were FSBO, While 90% Used a Real Estate Broker
Every year, a handful of brave souls think, "I can sell my house myself!" And every year, most of them realize, "Oh, wait... I actually need a professional." Only 6% of transactions were For Sale By Owner (FSBO), meaning a whopping 90% of buyers and sellers used a real estate broker.
Selling a home is more than sticking a sign in the yard and crossing your fingers. From pricing strategies to negotiations to paperwork (oh, the paperwork!), it’s clear that having an expert in your corner is still the way to go.
6. New Homes Are Back in Demand: 15% of Purchases Were New Builds, the Highest Share in 17 Years
The smell of fresh paint, untouched floors, and the knowledge that no one has ever done anything questionable in your bathroom—new homes are making a comeback! 15% of purchases were for new homes, the highest in 17 years.
With limited resale inventory and buyers craving modern amenities (hello, smart home tech and energy efficiency), new construction is becoming a hot commodity. Builders are stepping up their game, and buyers are increasingly willing to wait for a new build rather than fight for a resale home.
7. Bigger Down Payments Are the New Normal: 18% Median Down Payment (Highest in 20+ Years)
If you’re saving for a home, get ready to stash away even more. The median down payment hit 18%, the highest in over two decades. First-time buyers put down a median of 9%, while repeat buyers flexed their financial muscles with a 23% median down payment.
Why the increase? A mix of higher home prices, stricter lending standards, and buyers wanting to lower their monthly mortgage payments. If you’re planning to buy, start saving now—those piggy banks are going to need some extra stuffing.
Final Thoughts: What This Means for You
Whether you’re buying, selling, or just watching from the sidelines with a bowl of popcorn, these trends are shaping the market in big ways.
For sellers, it’s still a strong market—but pricing your home right is key. Buyers are paying full price, but they’re also savvy.
For buyers, competition is fierce, and cash is dominating. Be prepared to act fast and come in strong.
For real estate agents (like me!), these trends reinforce the need for expert guidance. With so many changes, having a knowledgeable broker on your side is more important than ever.
If you’re thinking of buying or selling in 2024, let’s talk strategy. And if you’re just here for the fun facts—stick around! There’s always more where this came from. 😉
