SignalsAZ.com Prescott News Podcast - Top 10 Highlights from NAR's 2024 Profile of Home Buyers and Sellers

Episode Date: December 5, 2024

Send us a text and chime in!The National Association of REALTORS® has produced the Profile of Home Buyers and Sellers since 1981. The report provides an overview of who purchased and sold a home in the last year. While the report is 141 pages long, and everyone will find a favorite statistic, these findings are of particular interest. 1. First-time Home Buyers First-time home buyers dropped to the lowest historical share since data collection began in 1981. First-time buyers faced limited inventory, continued erosion of housing affordability, and difficulty saving for a down payment. The most difficult step, even among successful first-time buyers, was just finding... For the written story, read here >> https://www.signalsaz.com/articles/top-10-highlights-from-nars-2024-profile-of-home-buyers-and-sellers/Check out the CAST11.com Website at: https://CAST11.com Follow the CAST11 Podcast Network on Facebook at: https://Facebook.com/CAST11AZFollow Cast11 Instagram at: https://www.instagram.com/cast11_podcast_network

Text to Speech audio articles made possible by the Quest Grant at Yavapai College. Tuition-free industry recognized certificates for your career. The National Association of Realtors has produced the profile of home buyers and sellers since 1981. The report provides an overview of who purchased and sold a home in the last year. While the report is 141 pages long, and everyone will find a favorite statistic, these findings are a particular interest. 1. First-time home buyers. First-time home buyers dropped to the lowest historical share since data collection began in 1981.

First-time buyers face limited inventory, continued erosion of housing affordability, and difficulty saving for a down payment. The most difficult step, even among successful first-time buyers, was just finding the right property. This year's successful first-time buyers cited high rent, student debt, credit card debt, and car loans as debt that held them back from saving. 2. buyer household income. Household income jumped among successful home buyers to all-time highs. With a rise in home prices and interest rates, home buyers who were able to purchase a home in the last year had to have higher incomes. Interest rates in the data collection period had topped nearly

8%, eroding housing affordability. For first-time buyers, household incomes rose by $26,000 in the past two years. Three. Median age of home buyers. As the income of homebuyers, as the income of homebuyers, increased, the age of home buyers also increased. Both first time and repeat buyers had all-time highs for their age groups. First-time home buyers are older, likely because they have to save for longer periods of time and are approaching a market with limited inventory in which they may have to search longer to find a home. Repeat buyers who are deciding to purchase are making moves later in life, perhaps in retirement. The number one motivating factor for a home seller to move is to be closer to friends and family. The lock-in effect of low-rate mortgages may be keeping

younger homeowners in place. 4. Share of buyers with a child under 18. Another notable demographic change is the share of buyers who have children under 18 in the home. The share dropped to a historic low of 27% of buyers from a high of 58% in 1985. This shift is likely due to a higher share of repeat buyers who are older. 61 is a median age this year, an overall drop in birth rates, and people having children later in life. For first-time buyers, 36% had children.

under 18, and for repeat buyers, 24% had children under 18. This change means a difference in neighborhood amenities and could change how often a buyer moves, for example, if they would move with a growing family or as an empty nestor. 5. Purchase of multi-generational homes. Multigenerational housing has reached an all-time high of 17% of home buyers. This could house an elderly relative or adult children over the age of 18 or families of other compositions for cost savings and to buy a larger home. As housing affordability is increasingly difficult, pooling incomes to purchase a larger home and split household expenses assists homebuyers in achieving homeownership. This may also be a way

for families to approach caregiving for young children with an extra set of hands or elder care for relatives. Six. Size of typical down payments. In 2024, the down payment was the highest for first-time buyer since 1997 and for repeat buyers since 2003. As homeowners continue to be advantaged in today's market, they gain housing equity and can place larger down payments on their next home. A larger down payment helps offset the mortgage interest rate with a lower monthly payment for all home buyers. Seven. All cash home purchases. All cash home buyers reached an all-time high this year at 26%. It is important to note that the data collected is only from primary residence buyers, not vacation home buyers or investors. For repeat buyers, they have earned

housing equity in the home and can make the next purchase, perhaps in retirement, without financing. For first-time buyers, the answer of how may lay in their down payment sources, 7% used inheritance, which is an all-time high, and 21% used financial assets. Perhaps using a combination of savings, inheritance, and cashing out stocks allow these first-time buyers to purchase without a mortgage. 8. Location of home purchased. Moving to city centers is at the highest level in a decade, at 16%. While homebuyers are still most likely to purchase homes in the suburbs, 45% and small towns, 23%. There is an attraction to the dynamic nature of cities, and it may not always be for work. In fact, when homebuyers note factors influencing their neighborhood choice,

convenience to one's job dropped to 34%, from 52% in 2014. The top factors are the quality of the neighborhood and convenience to friends slash family. 9. Homebuyers' use of real estate. A 88% of home buyers used a real estate agent or broker to purchase their home. Buyers want a real estate agent or broker who is not only able to help them find the right home but is going to help them negotiate and to help them explain and understand the real estate market. This is the biggest financial purchase of one's life, and real estate agents are helping buyers achieve the American dream.

10. Home sellers use of real estate agents. 90% of home sellers used a real estate agent or broker to sell their home. Similarly, home sellers want an agent to help them price their homes competitively, market their homes for sale, find a qualified buyer, and do so within a specific time frame. Buyers and sellers who are happy with their agent would recommend or use their agent again when buying and selling a home. For sale by owners, FSBO dropped to a historic low of just 6% of sellers. Two-thirds of FSBOs knew the buyer of their home. To find your favorite statistic, read and download report highlights. Copyright Copyright 2024 Top 10 highlights from NAR's 2024 profile of home buyers and sellers.

National Association of Realtors All Rights Reserved. Reprinted with permission. November 29, 2024. Residential and commercial real estate is made possible by Capstone Echo Homes.