The National Association of REALTORS® recently released its annual profile of home buyers and sellers. This report summarizes the results from a survey of recent home buyers and sellers who recently completed a transaction between July 2023 and June 2024. In this article, we highlight the key takeaways from the recent report which discusses the trends in a year that was marked by high mortgage interest rates and growing home prices. This put home buying out of reach for many potential home buyers while raising the housing equity of current homeowners.

1. The characteristics of the home buyer population were driven by changing demographics and housing affordability.

In an all-time survey low, the share of first-time home buyers decreased to 24 percent, much lower than last year’s share of 32 percent. On the other hand, the median home buyer age reached all-time highs. First-time home buyers had a median age of 38 years while the repeat buyer age increased to 61 years. This is likely due to housing affordability constraints delaying home buying opportunities for a lot of potential first-time buyers. At the same time, increased equity for existing homeowners allowed them to put more towards the down payment on their next home purchase. 62 percent of all buyers were married couples, an increased share compared to last year. Single females continue to make up a larger share of the home buyer population with a slight increase to 20 percent in 2024, while the share of single males went down to eight percent. Furthermore, 73 percent of recent buyers did not have a child under the age of 18 in their home, the highest share recorded. In another survey high, 17 percent of home buyers purchased a multigenerational home due to various reasons such as cost savings, taking care of aging parents, and children over the age of 18 moving back home.

2. On average, homes purchased by buyers were built more recently (1994) than has been the trend over the last two years (1980s).

Eighty-five percent of buyers purchased a previously owned home in 2024. At the same time, 15 percent of buyers purchased a new home mostly because they were looking to avoid renovations and plumbing or electricity issues. In a downward trend, the median distance between the home that buyers recently purchased and the home they moved from was 20 miles. The median distance used to be 50 miles in 2022 and is likely declining due to fewer people moving away from areas close to their job locations as return-to-office mandates are being put back in place. Adding more context to this trend, in its highest share recorded since 2014, 16 percent of buyers purchased in an urban area or central city. Buyers focused on quality of neighborhood, proximity to friends and family, as well as affordability while looking for a home.

3. While the internet was a common first stop for many interested home buyers, real estate agents played a crucial role in buyers’ home search process.

While many home buyers started their home buying process online by looking at available properties on the internet, they reported that real estate agents were the most useful information source in their home search process. Buyers typically spent 10 weeks in the home search process, and looked at a median of seven homes, two of which were viewed online only. Most buyers were satisfied with their home buying experience. Fifty-five percent of buyers thought that finding the right property was the most difficult aspect of the home-buying process, while 32 percent of first-time buyers suggested that saving for a down payment was the most difficult step.

4. A real estate professional continues to be essential to the home buying process.

Sixty-three percent of buyers of newly built homes used a real estate agent, while 92 percent of buyers of previously owned homes used a real estate agent or broker. Most buyers sought the help of an agent in finding the right home as well as negotiating the terms of sale in a complex financial transaction. Forty percent of buyers used an agent that they found through a referral, while 21 percent chose to purchase through an agent they had worked with in the past. The quality of service that real estate agents bring to the home buying process is made clear by the fact that 88 percent of buyers would use their agent again or recommend them to other buyers.

5. With an increase in the share of all-cash buyers (26 percent), the share of buyers who financed their homes went down.

Ninety-one percent of first-time buyers financed their home purchase, while only 69 percent of repeat buyers financed. The median down payment for first-time buyers was nine percent, the highest level since 1997. At the same time, the median down payment for repeat buyers was 23 percent, the highest level since 2003. Twenty-five percent of first-time buyers used a gift or loan from a relative or friend towards their down payment, while savings was the most common source at 69 percent. The share of first-time buyers using an FHA loan decreased to 29 percent from 55 percent in 2009. Buyers stay strong in their belief that purchasing a home is a good financial investment.

6. People have been staying in their houses for longer – the median number of years that a seller owned their home was 10 years, which is higher than what it used to be (only six years in the 2000s).

The typical age of home sellers was 63 years, which is the highest recorded ever. Two out of three home sellers reported moving within the same state. Most sellers sold their home to move closer to friends and family, because they had outgrown their previous home, or because their neighborhood had become less desirable. Sellers sold their homes for a median of 100 percent of their listing price and the recently sold homes were on the market for a median of three weeks, staying on the market for one week longer than last year.

7. Most real estate agents provided a broad range of services and the management of most aspects of the home sale.

Sixty-six percent of sellers found their agent through a referral or used an agent they had worked with in the past. While working with real estate agents, sellers placed a high priority on helping market the home to potential buyers, pricing the home competitively, and selling the home within a specific timeframe.

8. For-Sale-by-Owner (FSBO) sales were at an all-time low this year.

Only six percent of recent home sales were FSBO sales. While agent-assisted homes sold for a median of $435,000, FSBO homes sold for a median of $380,000. Thirty-eight percent of FSBO sellers knew the buyer of their home and predominantly sold to a friend, relative, or neighbor. Some of the most difficult steps for FSBO sellers were getting the price right, selling within the length of time planned, and understanding and performing the paperwork.

For more information on housing, demographic and economic trends in Virginia, be sure to check out Virginia REALTORS® other Economic Insights blogs and our Data page.