Buyer Struggles, Seller Gains

A recent profile of home buyers and sellers paints a mixed picture of today’s housing market with some interesting take-aways. For first-time buyers, entering the market has become increasingly difficult caused by high home prices, interest rates, and limited inventory. This has led many to delay buying homes until they are older, and those who do manage to purchase often require higher down payments and financial help from family or friends. In contrast, current homeowners are in a more favorable position, frequently using equity from their previous homes to pay in cash for new ones, allowing them to avoid mortgage rates that have risen above 7%. More than a quarter of recent home buyers were able to pay in cash, and repeat buyers made up the bulk of these cash purchases.

Sellers are generally in a strong position, typically receiving the bulk of the asking price and selling within a reasonable amount of time, benefiting from high demand and limited housing options. A smaller percentage of sellers are offering sales incentives due to the competitive market, and multigenerational homes have seen a rise in demand, as families look for cost-saving ways to manage high housing expenses. Another significant trend is the decline in For Sale By Owner sales, dropping to an all-time low of 6%, with most sellers turning to real estate agents for their guidance and marketing reach.