The latest Profile of Home Buyers and Sellers reveals fascinating shifts in the real estate market.
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Whether you're buying or selling, these trends offer a glimpse into what's shaping decisions and outcomes. Let's explore what's driving today's market.
First-Time Buyers Are Facing New Challenges
First-time home buyers now represent just 24% of the market, marking an all-time low.
Affordability challenges and rising costs are pushing the typical age of first-time buyers up to 38, a significant jump from previous years.
Key Takeaway: Buyers are waiting longer to enter the market, often needing more time to save for down payments and navigate rising home prices.
Multigenerational Living is on the Rise
Seventeen percent of buyers purchased multigenerational homes, driven by cost savings (36%) and the need to care for aging parents (25%).
Adult children moving back home also play a significant role, with 21% citing this as their primary reason.
Key Takeaway: Multigenerational homes are becoming a solution for both financial and familial needs.
Why Buyers Are Moving
While the desire to own a home remains the top motivator at 22%, convenience to family and friends and affordability are close behind.
Suburban areas and quality neighborhoods dominate buyer preferences.
Key Takeaway: Buyers are prioritizing lifestyle and location, often choosing proximity to loved ones over other factors.
The FSBO Struggle is Real
For-sale-by-owner (FSBO) homes accounted for just 6% of sales, a historic low.
FSBO homes typically sell for $380,000, far below the $435,000 median for agent-assisted sales. The most significant challenges for FSBOs include pricing their homes correctly (17%) and completing paperwork (10%).
Key Takeaway: Working with an agent can significantly boost sale prices and streamline the process.
Cash Purchases Are Increasing
A record 26% of buyers paid cash for their homes.
For those financing their purchase, savings remain the primary source for down payments, though first-time buyers often rely on gifts from family or friends.
Key Takeaway: Cash is king, but creative financing options remain crucial for many buyers.
Sellers Are Trading Up and Downsizing
While 36% of sellers bought larger homes, 32% opted to downsize.
Moving closer to family and friends was the most common reason to sell, followed by the home being too small or too large for current needs.
Key Takeaway: Sellers are making lifestyle-driven moves, with many adjusting their living space to match their priorities.
Conclusion
The real estate market is evolving, with buyers and sellers adapting to new challenges and opportunities.
Whether you're navigating affordability, considering multigenerational living, or trying to maximize your sale, understanding these trends can make all the difference.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
