ShareA Q&A with Jessica Lautz, Deputy Chief Economist and Vice President of NAR Research, on the 2024 Profile of Home Buyers and Sellers, which was published today.
Q: The report looks different this year. Why?
A: With the amount of data from the 43 years of conducting the report, we want to put as many trendlines in as possible to show how the data has moved over time. This year's report focuses on the differences between first-time and repeat buyers and just how different their buying experiences are.
Q: When was the report created?
A: The National Association of REALTORS® started the Profile of Home Buyers and Sellers report in 1981. The national report at that time was just 22 pages in length, and the survey had 59 questions. While this year's report also discusses interest rates, home buyers did have a more favorable financing market than in the 1980s. The 2024 report is now 141 pages and contains data from the survey with 127 questions.
The introduction in 1981 references how interest rates had come down to 13% from 17% the past year. Over the years, we have evolved the questions as the market and technology have changed. While in years past NAR used to report how many buyers used the Internet in their search process, these questions have become unnecessary—as nearly all home buyers use technology as a tool in their search process.
Q: Are there any significant changes in this year's report compared to last year's?
A: In talking with REALTOR® members, we learned that having the text directly next to the chart and streamlining long narratives helps to quickly understand the changes in the data and what is the most important point to convey. Some crosstabs have been removed, such as comparisons by family composition, but not to worry—those deep dives will be explored in blog posts and other materials throughout the year. Annually, there is the Snapshot of Race and Home Buying in America and Home Buyers and Sellers Generational Trends to look forward to.
Q: Who uses the report, and why?
A: As this report has evolved over four decades of publication, NAR has had a growing readership. The target audience is for REALTORS® to pick up the report and know who today's home buyers and sellers are and how they are approaching the market. Ideally, we hope the report helps members build their business and their niche. Over the years, others have referenced the report and findings from academics, staff on the Hill, and the media.
Q: Are there any interesting takeaways?
A: This year's biggest takeaway is just how divided the real estate market is between first-time home buyers and repeat buyers. While first-time buyers have struggled to enter the buying market due to decreased affordability and limited inventory, repeat buyers have high down payments, and a significant number are making all-cash purchases. Each year's report tells a different story, but this one provides a complicated look into a challenging housing market.