Who’s Buying Homes in 2024?
Understanding the Changing Market
In 2024, the real estate market is changing. Prices are coming down, and people are acting differently when it comes to buying homes. The Q2 2024 Home Buyer Survey gives us a good look at who is buying homes right now, where they’re from, and what kind of homes they want. For me personally use this information to help deliver marketing and determine a proper target market on who might be buying a particular home or property. Whether you’re thinking about buying or selling, this information can help you make smart choices.
Who’s Buying Homes Right Now?
Even though the market has slowed down, some groups are still very active in buying homes. Here’s a look at who’s made moves and if you are thinking about a move you can get started searching here:
Families with Children: The biggest group of buyers, making up 28%, are families with kids. They’re still looking for homes with more space, close to schools and parks.
Couples Without Kids: About 23% of buyers are couples without children. Some are downsizing, while others are looking for homes with more features and amenities.
Retirees and Empty Nesters: This group makes up 18% of buyers. These buyers are usually looking to downsize into easier-to-manage homes, possibly near healthcare or in quiet neighborhoods.
Single Buyers: Single women and men make up 13% each of the home-buying market.
Where Are Buyers Coming From?
Most of the buyers in 2024 are local, but some are coming from other parts of Canada. Here’s the breakdown:
Local Buyers: A huge 66% of buyers are from the local area. This is a big change from a few years ago when only 50% of buyers were local. It shows that residents are driving the market right now.
Lower Mainland and Vancouver Island Buyers: About 15% of buyers are coming from these parts of British Columbia. As prices in those areas stay high, buyers are looking for better deals in the Okanagan.
Alberta Buyers: 8% of buyers are coming from Alberta. People are still moving to the Okanagan for its lifestyle and lower prices.
What Kinds of Homes Are People Buying?
The types of homes being bought show how people’s priorities are changing:
First-Time Buyers: About 24% of buyers are first-time homebuyers. Even though interest rates are higher, they’re jumping into the market because there are deals to be made.
Move-Up Buyers: About 18% of buyers are moving up to bigger homes, using the price drops to upgrade to more space and better features.
Downsizers: 16% of buyers are downsizing to smaller homes.
How Are People Paying for Their Homes?
The survey also shows how people are paying for their homes, and it’s interesting to see that interest rates may not be as big of a factor as we think:
Cash Buyers: 31% of buyers are paying with cash. They don’t need to worry about mortgages, which gives them an advantage when negotiating.
Conventional Mortgages: About 54% of buyers are using mortgages, and they’re putting down at least 20%. This shows that most buyers are financially stable, even with higher interest rates.
What Does This Mean for the Market’s Health?
Even though the market has slowed down, there are still good signs that it’s stable its just operating at a different transaction level:
Buyer Activity: Families, retirees, and people from out of town are still very active in buying homes. Lower prices are giving more people a chance to buy or move to a new home.
Cash Buyers: The fact that many people are buying homes with cash shows that they still believe in the long-term value of real estate, even in a slower market.
Out-of-Town Buyers: Buyers from Alberta and the Lower Mainland are still coming to the Okanagan, keeping demand steady.
If you’re curious about how much your home is worth in today’s market, I can help! Request a free, no-obligation home valuation, and we can discuss what your home might sell for in the current conditions.
Hope you have a great week!
Mark and Maddie Coons
778-744-0872
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