The National Association of Realtors released data on Monday that showed that the median age of a repeat buyer this year was 58.
It seems that younger purchasers who are having difficulty breaking into the market are losing ground to grandparents. According to NAR, the percentage of first-time buyers in the market is currently 32%, significantly lower than the average of 38% since 1981. Compared to their late 20s in the early 1980s, they are also more likely to be in their mid-30s today.
The outcome is yet another peculiarity of the economy that emerged after the coronavirus, especially the surprisingly robust property market. Many people anticipated that a subsequent increase in mortgage rates would kill buyer demand as the Federal Reserve raised interest rates to 22-year highs. Though the 30-year fixed-rate mortgage is getting close to 8%, the housing slump was only temporary.
Meanwhile, a different image of the buyers who manage to purchase a home is beginning to take shape: they are wealthier and older, as many of them had previously sold a house.
There are numerous causes. To begin with, elder buyers are also probably going to be selling a home, which gives them access to new funds. As in the previous year, the average age of a house seller in 2023 was 60 years old, according to NAR.
Because there are so few properties available, sellers frequently accept the offer from the bidder who makes the strongest case, whether it be full cash, a sizable down payment, or excellent credit. Elderly consumers also have an advantage there.
