What were the trends driving the real estate market in 2024? The year just ended was a mix for buyers and sellers. It was not an easy year for home buyers over all. It was particularly hard for first time home buyers that were dealing with higher interest rates and higher prices. The real estate market appears to be split into a couple of dominate groups. One is the first group is the first time home buyer that is struggling to get into the market. The other group is the current home owner, that may have a lot of equity and might be able to buy their move up home with cash.

First time home buyers

The percentage of first time home buyers has fallen to an historic low of only 24% according to the National Association of Realtors (NAR). As an example, prior to 2008 first time homebuyers made up 40% of the market. Today first time home buyers are finding that it take a lot of money to enter into the housing market. They have been hampered by high rent and may find themselves having a hard time saving the money for a down payment. The first time homebuyers that are able to get into the market to buy a home are older. The median age of first time home buyers in 2024 was at an all time high of 38 years of age.

Cash buyers

The other side of the real estate market in 2024 was the cash buyer. Cash buyers soared to an all time high of 26%, according to NAR data. Paying cash allows for these buyers to avoid a mortgage and the high interest rates that soared to over 7% in 2024. According to NAR, 31% of the repeat home buyers were able to pay cash for their home purchase. This is thanks to the appreciation that home owners have seen over the last several years.

Home sellers

That is the picture for homebuyers. What was 2024 like for home sellers? Nationally, home sellers were typically able to sell their properties at 100% of their asking price. This is the highest recorded list-to-sell median since 2002. Due to high demand sellers were likely to sell their homes quickly also. The majority of home sellers did not need to offer a sales incentive.

Bright spots in the market

There are two very bright spots in the housing market. One is for single women with no children or SINKs as they are called. Household with single incomes, women in particular, made up 20% of the home sales over the last year. Young males, on the other hand, only make up 8% of the home sales.

The other bright spot in the housing market is new home sales. New home sales nationally accounted for 15% of home sales. That is the highest number in seventeen years. Homebuyers are drawn to new construction for many reasons. Some reasons include the incentives that are being offered by builders, including a buy down of interest rates on the buyer’s loan. New homes also provide buyers with the ability to customize their home design and the ability to avoid renovations and problems with major mechanical systems in the home.

The National Association of Realtors update for 2024 shows a real mixed bag regarding the real estate market. First time homebuyers are struggling and sellers are doing well. The best way to stay updated on the market and how it affects you is to connect with an agent that you know like and trust that can guide you and help you to make good decisions in the market.