Understanding Today’s Real Estate Trends: Insights from NAR’s Profile of Home Buyers and Sellers

Every year, the National Association of Realtors (NAR) releases its Profile of Home Buyers and Sellers, providing an in-depth look at who is buying and selling homes, what motivates them, and how the market is evolving. This year’s report offers a compelling snapshot of the trends shaping the housing market in 2024.

I love lookin at this repor tbecause whether you’re a buyer, seller, or industry professional, these insights can help you navigate the market more effectively. Here’s a breakdown of key takeaways from the latest report.

Who’s Buying?

1. First-Time Buyers Are Shrinking
   First-time buyers now make up just 26% of the market, a record low compared to historical averages around 40%. Rising home prices, limited inventory, and higher mortgage rates have made it challenging for younger buyers to enter the market.

   Tip: If you're a first-time buyer, consider working with a knowledgeable agent who can help uncover financing options, such as FHA or down payment assistance programs.

2. Millennials Still Lead the Pack
   Despite hurdles, millennials remain the largest generational group of buyers, representing about 43% of home purchases. This group values proximity to work, quality schools, and neighborhood walkability.

3. Diverse Motivations

   • Younger buyers prioritize growing their wealth through home equity.
   • Older buyers often purchase homes to downsize or to be closer to family.

Who’s Selling?

1. Longer Homeownership Tenure
   The typical homeowner now stays in their property for 13 years, up from 8-10 years a decade ago. This trend is driven by affordability concerns, limited options for move-up buyers, and rising costs of living.

2. Sellers Want Smaller, Easier-to-Maintain Homes
   Many sellers—especially baby boomers—are downsizing into smaller homes or relocating to more affordable areas.

3. Pricing and Timing Are Key
   The report reveals that 88% of sellers worked with an agent to price their home competitively and market it effectively, underscoring the value of professional expertise in a tight market.

The Role of Real Estate Agents

With economic uncertainties and shifting market dynamics, real estate professionals are more critical than ever. According to NAR, 86% of buyers and 90% of sellers worked with an agent, relying on their expertise to navigate complexities, negotiate deals, and maximize value.

Emerging Trends

1. Technology in Real Estate
   Virtual tours, e-signatures, and online tools are becoming standard in the home-buying process. 77% of buyers used the internet to search for homes, with most prioritizing detailed property photos and virtual walkthroughs.

2. Sustainability Matters
   Energy-efficient features are in high demand, especially among environmentally conscious buyers. Solar panels, efficient HVAC systems, and smart home technology are appealing features that can boost a home's value.

3. Relocation on the Rise
   Remote work continues to reshape housing patterns. Many buyers are moving to suburban and rural areas where they can afford larger homes without sacrificing lifestyle quality.

What This Means for You

• Buyers: It’s a competitive market, but with the right guidance and preparation, your dream home is within reach. Start by understanding your budget and exploring loan options.

• Sellers: Presentation and pricing matter. Investing in home staging or minor upgrades can help your property stand out.

• Investors and Professionals: These trends highlight opportunities to focus on niche markets, from first-time buyers needing extra support to downsizers looking for a seamless transition.

Whether you're entering the market or just curious about the latest trends, understanding the motivations and challenges of today’s buyers and sellers is key to success. If you're considering buying or selling in Long Beach, Compton or surrounding areas, I’d love to help you navigate the market with confidence.

Let’s connect and make your real estate goals a reality!