First-time home buyers decreased to 24% of the market, down from 32% last year. Before 2008, the historical norm of first-time buyers was 40%. NAR
2024 NAR Report: Key Real Estate Market Trends for 2025! Learn what to expect and how to prepare with strategies for buyers and sellers navigating a shifting market.
The National Association of REALTORS® (NAR) 2024 Profile of Home Buyers and Sellers offers a comprehensive look at the evolving housing market. From the rise of multigenerational living to the growing role of technology in home searches, the report highlights significant shifts impacting buyers and sellers. Understanding these trends is critical for navigating a competitive and dynamic real estate landscape in 2025. Read highlights of the report here
Key Real Estate Market Trends
A declining number of First-Time Home Buyers
First-time buyers now make up 24% of the market, the lowest share since tracking began in 1981. The number peaked in 2010. Rising home prices, limited inventory, and higher mortgage rates have made it increasingly difficult for younger buyers to enter the market. Many are burdened by inflation, stagnant wage growth, and student debt, which delay their ability to save for down payments or qualify for favorable mortgage terms.
Aging Buyer Demographics
The average age of first-time buyers has risen to 38, up from 35 last year, while repeat buyers now average 61 years old. This shift reflects the financial challenges younger generations face and the growing presence of older buyers in the market. Many older buyers are downsizing or purchasing homes with features like single-level living or proximity to family, while younger buyers often delay homeownership until they have greater financial stability.
Growth of Multigenerational Living
The Real Estate Market Trend of multigenerational living continues to grow, with 17% of buyers purchasing homes designed for multiple generations, the highest percentage recorded. Rising housing costs, combined with the need to care for aging parents or accommodate adult children, are key factors driving this trend. Homes with features like in-law suites, separate entrances, or accessibility accommodations are in high demand.
For sellers, marketing multigenerational-friendly properties can attract a broad pool of buyers. Builders are also increasingly designing homes with flexible layouts to meet this growing need.
Role of Technology in Home Searches
Technology continues to transform the home-buying process, with 96% of buyers using online tools to search for properties. Virtual tours have become a standard feature, allowing buyers to explore homes remotely and narrow their choices before scheduling in-person visits. Mobile apps and listing websites also play a central role in helping buyers compare properties, research neighborhoods, and track market trends.
For sellers, the emphasis on technology underscores the importance of online marketing. High-quality photos, detailed descriptions, and engaging virtual tours are essential to attract tech-savvy buyers and stand out in a crowded marketplace.
For Buyers: Navigating the Real Estate Market in 2025
Leverage Technology:
- Use online tools and apps to explore listings, compare prices, and take virtual tours.
- Research neighborhoods thoroughly before scheduling in-person visits to save time and narrow your focus.
- Research public city and county websites, local MLS’s and neigbhorhood groups for deeper local information on properties, the market.
Consider Multigenerational Options:
- Look for homes with flexible layouts or additional living spaces to accommodate family needs.
- Pool resources with family members to increase buying power and access larger or more desirable properties.
Work with a Real Estate Agent:
A knowledgeable agent can help you identify areas and neigbhorhoods and navigate competitive markets, craft strong offers, and identify off-market opportunities.
- Lean on their expertise to ensure your interests are protected during the search, when writing and negotiationg contracts and closing.
Stay Flexible:
- Broaden your search area to find neighborhoods that are priced lower but still offer most of your “must haves”.
- Consider homes requiring minor updates to expand your options but be wary of fixer uppers as repair costs and contractor availability can be challenging.
- Be prepared to act quickly in fast-moving markets by securing pre-approval, and when possible, fully underwritten.
- Reduce contingencies where possible.
Be Ready:
- Great deals can be found in any market. Be ready with your financing in place and a foundation of knowledge about your target market so when the right opportunity hits you can act quickly.
For Home Sellers: Maximizing Your 2025 Real Estate Market Opportunities
Highlight Multigenerational Features:
- Emphasize features that appeal to multigenerational buyers – separate entrances, in-law suites, second kitchens or accessibility upgrades.
- Showcase flexible layouts and shared spaces as key selling points in your marketing materials.
Optimize Online Presence:
- Invest in professional photography, floor plans and engaging virtual tours, and well-written descriptions to attract online buyers.
- Partner with an agent who understands digital marketing to maximize your listing’s visibility.
Price Strategically:
- Analyze market trends with your agent to set a competitive price that attracts serious offers.
Prepare Your Home:
- Make updates or repairs to enhance move-in-ready appeal. An experienced agent can help you determine which repairs make sense to do and which ones are not worthwhile. They can also help you with a list of vetted contractors.
- Consider a pre-listing inspection to address potential issues upfront and build buyer confidence.
- Start early. Often a decision to downsize for example takes years. It will also most likely take time to catch up on maintenance and
Conclusion
The 2024 NAR report underscores the shifting dynamics of the housing market, shaped by technology, changing demographics, and evolving buyer priorities. Buyers must embrace online tools, consider multigenerational options, and stay flexible to succeed in this competitive landscape. Meanwhile, sellers can maximize opportunities by tailoring their marketing strategies, emphasizing key features, and working with experienced agents to position their properties effectively. Understanding these key real estate market trends for 2025 insights and strategies, both buyers and sellers can navigate the 2025 market with confidence.
