Tuesday, November 26, 2024
This Thanksgiving week I’ve been thinking about going home. No matter what going home means to you, there is someplace that feels in your heart, like home. Maybe you will travel there this week, and will slip into the comfortable, well-worn and sometimes slightly itchy roles established years ago. Perhaps your house is the home that others make an effort to come to, and you’ll experience the joy of hosting.
Last night I sat in the airport and watched many joy-filled homecomings. As the digital advertising sign above the baggage carousel displayed houses in the area for sale, I realized that because of what you do, many folks will be having their first Thanksgiving in their new home this year. And it made me smile.
The annual publication of National Association of Realtor’s Profile of Homebuyers and Sellers was released earlier this month. It’s always a wealth of information and you should check out at least its free summary. There are some notable aspects that tell an interesting story of who is buying and selling homes these days.
First time homebuyers, for example, decreased in share to just 24% of buyers. That share is an all-time low since NAR began the study in 1981. First-time homebuyers typically make up somewhere around 40% of a typical year’s market. Yet, that also means essentially one quarter of your purchase closings are still for first-time buyers.
While there was plenty of tough news in the market for this cohort, high interest rates and low inventory levels… there was some good news for those who were able to purchase. First-time homebuyer incomes were significantly up. Their downpayment amounts were up as well.
36% of first-time homebuyers were non-white, and 13% were born outside the United States. Their median age is 38.
Interestingly, among all buyers, being close to work as a factor has decreased as a motivator. While being closer to friends and family has increased.
The desire for assistance from knowledgeable professionals seems intact, 88% of buyers used the services of a Realtor. 92% reported feeling satisfied with the purchase process – interesting for an industry that many claim is ripe for disruption.
After your Thanksgiving weekend, as you put the final touches on your 2025 sales and marketing plan, be sure to visit the rest of the market statistics covered in NAR’s summary of this report. It will help you know where to target and how to adjust your efforts. You’ll learn which sizes and types of homes are selling, and to whom. The data will help confirm the assumptions you’re making by measuring your own market. It can help you know where to steer your ship.
There are still plenty of challenges in the current market, for all buyers and sellers. Some barriers seem especially stubborn and resistant to change. Yet, I find focusing on the kinds of transactions that are successfully closing helps to take a bit more control of our company’s destiny.
So, enjoy the turkey whether it’s with friends or family. No matter if it’s in your home, or theirs.
Then let’s get back to the good work of helping folks acquire a home of their own.
Until Next Time,
Mary Schuster
Chief Knowledge Officer
October Research, LLC