The National Association of Realtors® (NAR) has released its 2024 Profile of Home Buyers and Sellers, revealing significant changes in the housing market. The share of first-time homebuyers dropped to an all-time low of 24%, down from 32% last year, as the median age of homebuyers reached a record 56 years, up from 49 years in 2023.

According to Jessica Lautz, NAR’s deputy chief economist, the market is split between first-time buyers facing affordability challenges and current homeowners using cash from built-up equity. “High prices, elevated mortgage rates, and limited inventory are making it harder for first-time buyers, pushing their average age to 38,” Lautz explained.

Household incomes for buyers increased slightly, with first-time buyers at a median of $97,000. Meanwhile, 26% of buyers paid cash for their homes, the highest on record. Married couples remain the dominant demographic, making up 62% of all buyers, while multigenerational homes are on the rise, driven by cost-saving and caregiving needs.

Despite the prevalence of online tools, 88% of purchases were made with the help of real estate agents. NAR President Kevin Sears emphasized that “Realtors® are essential in navigating a complex housing market.”

For sellers, the median age also hit a record high of 63 years, with most citing a desire to move closer to family. The use of real estate agents in home sales increased to 90%, while for-sale-by-owner transactions hit an all-time low of 6%.

NAR’s annual report highlights the challenges facing buyers and sellers in a shifting market, with the full survey covering transactions from July 2023 to June 2024.