Demographics of Home Buyers and Sellers
Demographics and Trends
First-time buyers comprised 24% of the market, down from 32% last year, marking the lowest share since data collection began in 1981.
The median age of first-time buyers rose to 38 from 35 last year, while repeat buyers' median age increased to 61 from 58.
Marital status of buyers: 62% married couples, 20% single females, 8% single males, and 6% unmarried couples.
73% of buyers did not have children under 18 at home, the highest share recorded.
17% of buyers purchased multigenerational homes for reasons including cost savings (36%), caring for aging parents (25%), adult children returning home (21%), or children who never moved out (20%).
Racial demographics: 83% White/Caucasian, 7% Black/African-American, 6% Hispanic/Latino, 4% Asian/Pacific Islander, and 3% other races.
Sexual orientation: 88% heterosexual, 3% gay/lesbian, 2% bisexual, 1% self-described, and 6% undisclosed.
16% of buyers were veterans, and 2% were active-duty service members.
The top reason for purchasing a home was the desire to own a home (22%), with this figure rising to 64% among first-time buyers.
Home Features and Locations
15% of buyers purchased new homes; 85% opted for previously-owned homes. Avoiding renovations was a key factor for new home buyers (42%), while better value drove previously-owned home purchases (31%).
Detached single-family homes dominated purchases (75%), followed by townhouses or row houses (7%).
Senior-related housing accounted for 19% of purchases by buyers aged 60 and older. Among them, 58% bought detached single-family homes, and 52% chose suburban locations.
Median relocation distance decreased to 20 miles from 50 miles in 2022, still above the 15-mile range seen from 2018–2021.
Buyers prioritized neighborhood quality (59%), proximity to friends/family (45%), and affordability (36%) when choosing a location.
The typical home purchased was built in 1994, an increase from the 1980s trend of the prior two years.
Buyers expected to remain in their homes for a median of 15 years; 25% stated they never planned to move again.
Home Search Process
43% of buyers began their search online, while 21% contacted a real estate agent as their first step.
86% of buyers utilized real estate agents, the highest usage rate among available resources.
The median search duration was 10 weeks, with buyers viewing a median of seven homes (two online only).
Website content priorities: photos (41%), detailed property information (39%), and floor plans (31%).
Satisfaction levels: 59% very satisfied, 33% somewhat satisfied with their home-buying process.
Real Estate Professionals
88% of purchases involved a real estate agent or broker, while 5% bought directly from builders and 5% from previous owners.
Primary agent services: finding the right home (49%) and negotiating terms (14%).
Referral rates: 40% found agents through personal networks, rising to 51% for first-time buyers.
Most buyers interviewed only one agent (77% of repeat buyers, 67% of first-time buyers).
88% would use or recommend their agent again.
Financing and Investments
74% of buyers financed their home purchases, down from 80% last year. Financing rates: 91% for first-time buyers, 69% for repeat buyers.
Cash purchases reached a record high of 26%.
Financing sources: 49% used savings, 25% of first-time buyers received gifts or loans from relatives or friends.
Loan types for first-time buyers: 52% conventional, 29% FHA, 9% VA. FHA usage declined significantly from 55% in 2009.
79% of buyers considered homeownership a good investment; 39% rated it better than stocks.
Characteristics of Home Sellers
Median seller age reached a record high of 63.
Top reasons for selling: proximity to friends/family (23%), home size (12% too small, 11% too large), and declining neighborhood desirability (10%).
Median homeownership tenure remained at 10 years, up from six years during 2000–2008.
36% of sellers upgraded to larger homes, 30% bought similar-sized homes, and 32% downsized.
Sold homes typically matched their listing price (100%), consistent with last year’s record.
Median time on the market extended to three weeks, up from two weeks last year.
Seller satisfaction: 68% very satisfied, 22% somewhat satisfied.
Real Estate Professionals for Sellers
66% of sellers used agents referred by friends or those they had worked with previously.
81% contacted only one agent before making their choice.
50% of sellers used the same agent for buying and selling, rising to 71% for moves within 10 miles.
Key agent tasks: marketing the home (22%), pricing competitively (20%), and meeting the seller’s timeline (18%).
87% of sellers would recommend their agent: 72% definitely, 15% probably.
For-Sale-By-Owner (FSBO) Sales
FSBO sales dropped to a historic low of 6%, with 90% of sellers using real estate agents.
FSBO motivations: 38% sold to friends, relatives, or neighbors.
Challenges for FSBO sellers: pricing (17%), timeline (13%), and paperwork (10%).
FSBO homes sold for a median of $380,000, compared to $435,000 for agent-assisted sales.
