Blog Uncategorized 2024 Real Estate Industry Statistics and Trends (Updated!)

2024 Real Estate Industry Statistics and Trends (Updated!)

Key Takeaways

• Median home prices keep rising across the country. 
• Despite using online search tools, most buyers and sellers still work with agents. 
• Forecasts don’t show much relief in interest rates on the horizon. 
• Realtor confidence remains somewhat high, with many anticipating buyer and seller traffic increases over the next three months. 
• Supply is still limited compared to demand. 

Are you ready to dive into updated real estate agent statistics? If so, we’ve got what you need.

Knowing what’s going on in the housing market keeps you competitive. Whether you’re a seasoned agent or starting out, this is true.

Buying or selling a home is a major decision for your clients. Having the right data at your fingertips can help guide them. 

We’ll break down need-to-know statistics. Boost your success as an agent by helping your clients make informed decisions. 

Let’s start. We’ll explore the stats shaping the U.S. real estate market today!

Home Buying Trends

Let’s jump into our statistics for the United States! You’re in the right place if you’re curious about who’s buying. 

We’ll look at first-time homebuyers and discuss how people search for homes these days. 

So who’s buying right now?

• By the end of 2023, 32% of buyers were first-timers. Six out of ten mortgage applications came from first-time buyers.
• The median age of first-time buyers was 35 compared to that of repeat buyers, 58. 
• The median income for first-time buyers was $95,900. The median household income for repeat buyers was $111,700. 
• Most buyers getting a mortgage borrowed 85% of the home price. 
• Younger millennials’ proportion of first-time buyers increased from 70% to 75% over the past year. 
• 51% of buyers owned a previous home. 36% of all buyers rented a house or apartment previously. 

What about the sellers?

• Last year, the typical seller was 60 years old and had lived in their home for ten years. 
• Recent sellers typically saw their homes selling for 100% of the listing price. Thirty-two percent said they’d reduced the asking price at least once. Certain states are seeing the effects of houses selling for lower than original asking price more than others.
• Sellers had a median household income of $111,1000. 
• Typical homes were on the market for two weeks. 

How about the landscape for real estate agents?

• 52% of buyers found the home they bought online. 
• 89% purchased through an agent or broker. 
• 90% of buyers said they’d use their agent again or recommend them to someone else. 
• As was true for buyers, 89% of sellers used a real estate agent. 
• 39% of sellers using agents found them through a referral. 26% used the agent they worked with previously to buy or sell a home. 
• 8% of buyers bought only based on a virtual tour, open house or showing. They never saw the home in person. This is 6% higher than a month ago, but the number is flat compared to a year ago.
• The typical home purchased was built in 1985. It’s 1,860 square feet.

What about sellers who aren’t working with a realtor?

For sale by owner only made up around 7% of last year’s total home sales. The total FSBO home sold for $310,000. Typical agent sales were $405,000.

The toughest part for FSBO sellers?

According to NAR, pricing was the main challenge. Other challenges included selling the house fast enough. Dealing with paperwork was also a common problem. 

The pandemic sped up the digital-first house hunt. That hasn’t shown signs of slowing down. In one NAR report, all buyers used the Internet in their search process. These days, buyers can tour the property virtually. Agents can take advantage of 3D and drone tours and virtual staging. 

• The most popular real estate sites in 2023 included Zillow. It had around 57 million monthly visits, much higher than any other ranking site. 
• Realtor.com was the runner-up with around 30 million monthly visits. 
• Trulia ranked third, with close to 10 million visits. 
• For 42% of people, looking online was the first step in buying a home. 

Homeownership Trends

The rate of homeownership has struggled over the past decade. In the first quarter of 2024, rates declined by 0.1%. The latest homeownership rate is 65.6%.

A lot of this is blamed on rising home prices and elevated mortgage rates. We’ll talk about some of these issues in more depth below.

As you probably realize, as a real estate professional, there’s also a tight supply of entry-level homes. These are the properties that would attract a first-time buyer. They’re extremely limited at the moment.

May’s median sales price was the highest ever recorded. That specific number is listed below.

The mortgage payment for today’s typical home is more than twice what it would be for homes bought in 2020.

The State of the Market: What’s Going On?

Next, we’ll provide the scoop on existing home sales. We’ll also dig into median sale prices and rental prices. 

• There were 4.11 million in sales in May 2024. 
• There was a median sales price of $419,300 and 3.7 months of inventory. 
• The median sales price is up 5.8% year-over-year from May 2023, and inventory was up 0.6 months in the same period. 
• Sales were down in May month-over-month by 0.7% and 2.8% year-over-year. 
• Pending home sales slipped 2.1% in May. The Midwest and South saw monthly losses in transactions. 
• Year-over-year, all regions in the country saw a drop. 

So what about those who stay out of the buying market and stick with renting? It’s tough out there for them too. 

In July 2024, rent prices rose for the fifth month in a row. 

• National median rent went up 0.4% in June, now at $1,411. 
• The national median rent is still $200 higher monthly than a few years ago. 
•  The median rent is 2.1% below its August 2022 peak, but it’s still 23% higher than it was at the beginning of 2021. 
• In 80 of the 100 largest cities nationwide, rents are up.
• Austin has seen one of the sharpest rent declines. Prices declined 7.4% over the past 12 months, which may be due to more inventory. 

How Confident Are Realtors Right Now?

How are other pros feeling about the housing market?

Some of the details from the Market Outlook from the Realtors Confidence Index include:

• 20% expect a year-over-year increase in buyer traffic over the next three months. That’s down from 22% a month ago. 
• 21% of survey respondents expect a year-over-year increase in seller traffic over the next few months. That’s flat from a month ago but up 14% from a year ago. 
• Supply is still limited compared to demand. 30% of homes sold are above the listed price. 
• The average number of offers for homes on the market was 2.8, down from 3.2 last month. 
•  Realtors report competitive contract activity. 28% of buyers had all-cash sales. 22% gave up the inspection contingency. 

What Types of Homes Are People Buying?

What is it that buyers are looking for? 

• 87% purchased a previously owned home, and 13% bought a new one. 
• New home buyers want to avoid renovations. They also worry about plumbing and electricity issues. Buyers of previously owned homes said they mostly cared about price.
• 79% of recent buyers purchased detached single-family homes. Townhouses or row houses came in at 8%. 
• Senior-related houses increased from 7% last year to 19%.
• 60% of buyers said neighborhood quality was the most important location determinant. Next, being close to friends and family was 45%, and the price was a priority for 39%. 

Real Estate Agent Statistics

When looking at real estate agent statistics, you might wonder how your peers are doing.

• 64% of realtors were licensed sales agents in a recent survey.
• The median years of real estate experience for a realtor is 11 years.
• Most realtors worked 30 hours per week.
• The median number of residential sales for realtors was 12 annually.
• 94% of realtors prefer to talk to clients through text.
• 67% of realtors use Facebook for professional reasons. 49% use LinkedIn.

Predictions for the Future 

A lot of us are likely feeling edgy about interest rates. Homebuyers are sitting on the sidelines but may not get relief soon. 

• Fannie Mae expects the average 30-year rate to drop slightly to around 6.7% by the end of the year. 
• The Mortgage Bankers Association is more optimistic. They expected it to be 6.6% by the same time. 
• Freddie Mac wrote in June that rates will stay above 6.5% through the end of the year. 
• Rates fell slightly compared to the highest in April and May.

Some experts predict buyers who have been waiting may give up and make a purchase. They think that when mortgage rates come down, prices will go up. 

Predictions for what will happen with home prices next year vary.

• Goldman Sachs predicts 4.4% growth in home prices in 2025. 
• The Mortgage Bankers Association sees prices going up 3.3%. 
• Fannie Mae predicts a 1.5% increase. Freddie Mac only sees a 0.5% increase. 

Freddie Mac’s most recent report sees the housing outlook as “subdued.” They describe demand as solid because of millennial first-time buyers. Challenges are ongoing, including high mortgage rates and a need for more available homes for sale. 

Wrapping It All Up

Alright, we’ve covered a lot of ground in the home-buying market and how real estate professionals feel these days. These facts and figures can give you a better picture of what’s happening.

Whether you’re curious or want to boost your business, knowing these trends and stats can be super helpful for staying engaged in the industry.

More Resources for New Real Estate Agents

It’s important to keep your thumb on the tab of real estate agent demographics, financials, and housing market stats. This will help you stay aware of vulnerabilities in the market and be on top of new trends. 

Most importantly, if you’re a REALTOR®, it will help you better understand your clients. Along with staying on top of real estate market trends, maintaining professional credentials is another key ingredient for real estate success. All real estate agents need to renew their licenses every few years, and many go on to earn specific certifications.

AgentAdvice.com has detailed information and reviews of real estate schools across states. These schools provide materials for licensing exams, info about investing in real estate, and continuing education courses.

If you’re new to the industry and looking for your first brokerage, reviews from fellow agents can help you find a brokerage that’s right for you. Find more information about everything you need to be successful as a real estate agent, such as how and where to network, on AgentAdvice.com.