Highlights from the 2024 Profile of Home Buyers and Sellers

 Highlights from the 2024 Profile of Home Buyers and Sellers

We are in the final stretch of 2024, and if you’re a seller or buyer, this post might provide you with information about who was in the market and might give you some insight into the market going into 2025.  This data can also help sellers know who their buyers could be when looking at their homes and figure out what features matter when home buyers are looking to buy. At the same time, buyers need to understand the seller so buyers understand possible seller motivation. Unlike a buyer who does not have a home to sell, a seller might have a second home they can go to to close quicker than the buyer, and they might look at price reductions differently than a buyer. 

Demographics:
– The median age of home buyers hit record highs: 56 years for all buyers, 38 for first-time buyers, and 61 for repeat buyers.
– Married couples dominated at 62%, while single females rose slightly to 20%, and single males decreased to 8%.
– Most buyers (83%) identified as White, with smaller shares identifying as Black (7%), Hispanic (6%), or Asian (4%).

Living Situations:
– A significant 73% of buyers did not have children under 18 in their households, the highest recorded percentage.
– Multi-generational home purchases rose to 17%, driven by cost savings (36%), caring for aging parents (25%), and adult children moving back home (21%).

First-Time Buyers:
– First-time buyers dropped to 24% of the market, the lowest share since data collection began in 1981.
– Most first-time buyers (64%) purchased homes to fulfill their desire for homeownership.

Veteran and Military Buyers:
– Sixteen percent of buyers were veterans, while 2% were active-duty service members.

Reasons for Purchasing:
– Overall, 22% of buyers cited the desire to own a home as their primary reason, rising to 64% among first-time buyers.
– Timing played a role for 43% of buyers who felt it was the “right time” to buy.

Income and Affordability:
The median household income for all buyers in 2023 was $108,800, with first-time buyers earning $97,000 and repeat buyers earning $114,300.
– Married couples had the highest median income, while single females had the lowest.

Market Trends:
– Forty-three percent of buyers acted when the timing felt right, while 23% purchased because they had limited choices.
– Multi-generational homes designed for flexibility gained traction due to economic and family dynamics.

This data highlights home buyers’ evolving characteristics and motivations, with trends pointing toward aging demographics, diverse family compositions, and shifting priorities in a complex housing market.

 Home Sellers and Their Selling Experience

Demographics and Household Composition
– Children in Household: 77% of home sellers did not have children under 18 living at home.
Ethnicity: Ninety percent of sellers identified as White, 4% Hispanic/Latino or Black/African-American, and 3% Asian/Pacific Islander.
– First-Time vs. Repeat Sellers: 76% of sellers were repeat sellers, and 24% were first-time sellers, a decrease from 30% last year.

Selling and Buying Trends
Proximity of Purchase: 66% of sellers purchased another home within the same state, while 18% moved to a different region.
– type of Home Sold: Detached single-family homes accounted for 81% of sales, with townhouses making up 5%.
– Home Size: 36% of sellers traded up to larger homes, 30% bought similarly sized homes, and 32% downsized.
– Condition of Home: 50% of homes sold had minor repairs or updates, while 39% were sold as-is.

Market Conditions
– time on Market: The median time on the market was three weeks, one week longer than last year. For less than four weeks, homes on the market typically sold at 100% of the asking price.
– Sales Price:  65% of sellers did not reduce their asking price. The median sales price was 100% of the listing price, maintaining a strong market.
– Incentives: Only 24% of sellers offered buyer incentives, a decrease from 33% last year. Popular incentives included closing cost assistance and home warranty policies.

Reasons for Selling
– Top Reasons: The most cited reasons were moving closer to friends and family (23%), the home being too small (12%), or too large (11%).

Seller Satisfaction
– Experience: 68% of sellers were delighted with the selling process, and 22% were somewhat satisfied.

This highlights how the selling experience varies based on demographics, market trends, and personal motivations. Sellers benefit from strong buyer demand and limited inventory. If you’re a Seller or Buyer wondering how to plan for 2025, regardless of your buyer or seller, let’s grab a cup of coffee and talk a bit about the real estate market and how this information can be personalized to you.