The NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers, an annual flagship report, offers a detailed look into the behaviors and trends of home buyers and sellers. The report captures the unique economic, social, and demographic shifts influencing the real estate market. The latest edition, which surveyed individuals who completed transactions between July 2023 and June 2024, revealed several record-breaking trends that underscore how home buying and selling are evolving in the current market.

Key Findings from the 2024 NAR Profile

1. Median Age of Buyers Reaches New Heights
   1. The median age of all home buyers increased to 56, up from 49 last year.
   2. First-time buyers saw their median age rise to 38, compared to 35 in the previous year.
2. Decline in First-Time Buyers
   1. First-time buyers made up just 24% of all home buyers—the lowest percentage ever recorded.
3. Changing Household Dynamics
   1. 73% of buyers did not have children under 18 living at home, the highest percentage recorded.
   2. A record-high 17% of buyers purchased multi-generational homes, reflecting the growing trend of combining households.
4. Increased Cash Purchases
   1. 26% of buyers paid in all cash, another record high for this category.
5. Rising Down Payments
   1. The median down payment for first-time buyers was 9%, the highest since 1997.
   2. Repeat buyers reported a median down payment of 23%, the highest since 2003.

What These Trends Mean for Buyers and Sellers

While the data may seem surprising at first glance, these trends reflect the current realities of the housing market. Higher interest rates and record-high home prices have made owning a home more challenging, especially for younger generations. Here’s a closer look at some key takeaways:

1. Affordability Challenges: The reduced share of first-time buyers and increased median ages indicate that younger generations are struggling to afford homes. Many are delaying their purchases due to high prices and interest rates.
2. Rise in Cash Buyers: The growing percentage of cash buyers reflects the influence of older buyers who have had more time to save and build equity in previous homes.
3. Multi-Generational Homes: More buyers are consolidating households to save money and support aging parents or adult children living at home.
4. Delayed Moves: Both buyers and sellers are waiting longer to make their moves, resulting in higher average ages across all categories.

The Role of Real Estate Agents in a Complex Market

Real estate continues to be the best way to grow wealth.  However, the process of buying and selling homes has become increasing more complex, despite the abundance of data and technology available to the public. The statistics speak volumes:

1. 86% of buyers relied on a real estate agent to guide their purchase.
2. 92% of sellers of previously owned homes used an agent.

These figures highlight the importance of professional guidance in navigating today’s real estate market. From understanding pricing strategies to managing negotiations, a real estate agent’s expertise is invaluable in helping clients achieve their goals.

As market conditions continue to evolve, having a trusted professional by your side is more important than ever. Whether you’re a buyer trying to navigate affordability challenges or a seller looking to maximize your home’s value, the insights and experience of a real estate agent can make all the difference.

If you’re considering buying or selling a home in the new year, let’s connect to discuss how our can help you succeed in today’s market.

Happy Holidays!

And as always, here’s a summary of the stats for single family homes in Mecklenburg County in November compared to the previous month and again to the same month last year:

• Home sales down 8% from last month but up 14% from last year.
• Average sales price is up 1% from last month and 8% from last year.
• Median sales price is up 1% from last month and 9% from last year.
• Average price per square foot is up 1% from last month and 6% from last year.
• Sale to list price ratio at 99% is unchanged from last month and last year.
• Average time on market is up 26% from last month and 59% from last year.
• Pending sales are down 11% from last month, but up 1% from last year.
• Supply is down 14% from last month, but up 29% from last year.
• Mortgage rates at 6.6% are down from 6.78% last month and down from 6.95% last year.
• Average house payment is down 1% from last month, but up 4% from last year.

You can always find the detailed stats on our website here.

** Data from Canopy MLS