Trends in Home Purchases

The majority of buyers (85%) opted for previously owned homes, while only 15% purchased new construction. Those who chose new homes did so primarily to avoid repairs and maintenance concerns (42%), whereas buyers of existing homes felt they offered better value (31%).

Single-family detached homes remained the most popular choice, making up 75% of purchases, followed by townhouses and row houses at 7%. Among buyers aged 60 and older, 19% sought senior-related housing, with 58% choosing detached homes and 52% moving to suburban or subdivision areas.

On average, buyers relocated about 20 miles from their previous residence—less than the 50-mile median reported in 2022 but still higher than pre-pandemic trends. The top reasons for selecting a neighborhood included overall quality (59%), proximity to family and friends (45%), and affordability (36%).

The typical home purchased was built in 1994, a shift from the previous two years when buyers were acquiring homes from the 1980s. Buyers expected to remain in their homes for a median of 15 years, with a quarter stating they had no plans to move again.

Home Search Process

Online searches played a crucial role in home buying, with 43% of buyers beginning their search on the internet. Meanwhile, 21% reached out to a real estate agent as their first step. The majority (86%) worked with an agent during their purchase, making it the most utilized source of information.

Buyers spent an average of 10 weeks searching, typically viewing seven homes—two of which they saw exclusively online. Every buyer used the internet at some point during their search, with property photos (41%), detailed listing information (39%), and floor plans (31%) being the most valuable website features.

Satisfaction levels remained high, with 59% of buyers reporting they were very pleased with their home purchase experience, while 33% were somewhat satisfied.

The Role of Real Estate Professionals

The majority of home purchases (88%) were facilitated by a real estate agent or broker, emphasizing their continued importance in the process. A smaller percentage of buyers purchased directly from a builder (5%) or the previous homeowner (5%).

The primary reasons buyers sought an agent’s help were to find the right home (49%) and to negotiate sale terms (14%). Referrals remained a key source of business for agents, with 40% of buyers finding their agent through a personal connection. This was especially true for first-time buyers, where 51% relied on recommendations from friends, family, or neighbors.

Most buyers (77% of repeat buyers and 67% of first-time buyers) interviewed only one agent before deciding who to work with. An overwhelming 88% of buyers stated they would work with the same agent again or recommend them to others.

Financing a Home Purchase

The share of buyers financing their home purchase dropped to 74%, down from 80% in the previous year. First-time buyers were more likely to rely on financing (91%), while 69% of repeat buyers took out a mortgage.

A record 26% of buyers paid all cash for their home. Among those who financed, 49% used personal savings for their purchase—down from 54% last year. First-time buyers commonly relied on savings (69%), while 25% received financial assistance from family or friends.

The majority of first-time buyers (52%) used conventional loans, while 29% opted for FHA loans and 9% utilized VA loans. The percentage of FHA loan users has steadily declined since 2009, when 55% of first-time buyers chose this option.

Homeownership remained a strong investment in the eyes of buyers, with 79% believing it was a smart financial move. Of those, 39% saw homeownership as a better investment than stocks.

Selling a Home in 2024

The typical home seller this year was 63 years old, marking the highest average age recorded. The most common reason for selling was a desire to live closer to friends and family (23%), followed by needing a larger home (12%), downsizing (11%), and concerns about the changing neighborhood (10%).

On average, sellers had owned their homes for 10 years before selling, consistent with last year but significantly longer than the six-year average reported between 2000 and 2008.

When purchasing a new home, 36% of sellers upgraded to a larger property, 30% bought a similarly sized home, and 32% downsized.

Final sales prices remained strong, with homes selling at a median of 100% of the asking price—the highest since 2002. However, homes took slightly longer to sell this year, with a median time on the market of three weeks, compared to two weeks last year.

Seller satisfaction was high, with 68% reporting they were very satisfied with the selling process, while 22% were somewhat satisfied.

Working with a Real Estate Agent to Sell a Home

Most sellers (66%) chose an agent based on a prior experience or a referral. A significant majority (81%) hired the first agent they contacted.

Half of all sellers used the same agent for both selling their home and purchasing a new one, a figure that rose to 71% for those moving within 10 miles.

The top priorities for sellers included marketing their home to buyers (22%), pricing it competitively (20%), and selling within a specific timeframe (18%).

When selecting an agent, reputation was the most important factor (35%), followed by trustworthiness and honesty (21%). Most sellers (87%) said they would definitely (72%) or probably (15%) recommend their agent to others.

For-Sale-by-Owner (FSBO) Trends

The percentage of FSBO sales dropped to a historic low of 6%, while 90% of sellers worked with a real estate agent—an increase from 89% last year.

Among FSBO sellers, 38% sold their homes to someone they already knew, such as a relative or friend. The biggest challenges they faced included setting the right price (17%), selling within their preferred timeframe (13%), and managing paperwork (10%).

FSBO homes typically sold for less than agent-assisted sales. In 2023, FSBO homes had a median sale price of $380,000—significantly lower than the overall median home price of $435,000.

 

Source: National Association of REALTORS® (NAR), 2024 Profile of Home Buyers and Sellers.