North Columbus News

Home buyers are encountering high prices, elevated mortgage rates, and limited choices in some markets. Despite these challenges, many are finding ways to navigate the housing market, while others remain hesitant.

A significant number of home buyers continue to rely on real estate agents for guidance. According to the National Association of REALTORS®' 2024 Profile of Home Buyers and Sellers, "Eighty-six percent of home buyers used a real estate agent in their transaction over the past year."

First-time buyers are becoming more cautious. The share of first-time buyers has fallen to a historic low of 24% over the past year. Before 2008, they comprised 40% of the market. Many face obstacles such as high rent, student loans, and credit card debt when saving for a down payment. Those who manage to buy are putting down higher amounts than before—a median of 9%, the highest since 1997—and often rely on financial help from relatives or friends. The median age for first-time buyers has reached an all-time high of 38 years old.

More buyers are opting to pay cash for homes instead of securing mortgages. Over the past year, "more than a quarter—26%—of home buyers paid cash," marking an all-time high as interest rates have exceeded 7%. Repeat buyers frequently use profits from previous sales to purchase new homes without mortgages.

Multigenerational buying is increasing due to cost savings and family priorities. This trend has risen to an all-time high of 17% over the past year. Jessica Lautz, NAR’s deputy chief economist, notes that "as home buyers encounter an unaffordable housing market, many are choosing to double up as families."

Newly built homes have gained appeal among buyers seeking customizable features and avoiding renovation issues. New construction accounted for 15% of home sales last year—the highest share in about 17 years.

A new demographic force in real estate is emerging: SINKs (single income and no kids). Single females represented 20% of home sales over the past year, while single males fell to 8%. Additionally, fewer recent home buyers have children under age 18 at home—73%, according to NAR's data.