Shifting Trends in Homebuying: What the 2024 Market Means for Buyers and Sellers in Bakersfield and Kern County

The National Association of Realtors (NAR) recently released its 2024 Profile of Home Buyers and Sellers, and the findings reveal a significant shift in the homebuying landscape. From increasing buyer ages to evolving family dynamics, the data highlights changes that impact both buyers and sellers, especially in markets like Bakersfield and Kern County.

First-Time Homebuyers at a Historic Low

The NAR report shows that first-time homebuyers now represent just 24% of the market—a historic low, down from 32% last year. This shift points to the challenges that new buyers face, such as high home prices, rising mortgage rates, and limited inventory. Entering the market has become especially difficult for first-time buyers in Kern County, where these factors continue to influence real estate transactions.

Older Buyers Are the New Norm

Another standout trend is the record-high age of homebuyers. The typical buyer today is 56 years old, with first-time buyers averaging 38 and repeat buyers 61. This increase in age reflects the challenging barriers for younger buyers, who must now build greater financial stability before entering the market. Meanwhile, established homeowners with built-up equity are better positioned to buy with larger down payments or even cash, making it easier for them to secure homes in competitive areas like Bakersfield.

Incomes on the Rise to Meet Housing Costs

The financial profile of buyers has shifted as well. In 2023, the average household income of homebuyers rose to $108,800, with first-time buyers earning around $97,000 and repeat buyers $114,300. These rising income levels are a response to the high cost of housing. For those in Bakersfield and Kern County, this underscores the importance of working with a knowledgeable real estate agent who understands the local market and can help buyers find homes that fit their financial goals.

Multigenerational Living on the Rise

One response to the affordability challenge has been a rise in multigenerational homes, now making up 17% of all purchases. Many families are choosing to combine households to save on costs, care for aging relatives, or support adult children moving back home. In Kern County, this trend means a greater demand for homes with enough space to accommodate extended family members. Real estate agents in Bakersfield can be especially valuable for buyers navigating this unique housing requirement, as they often know of homes that might not meet the typical single-family criteria.

Down Payment and Financing Trends

In today’s market, down payment amounts vary greatly between first-time and repeat buyers. In 2024, first-time buyers are making down payments of about 9%, while repeat buyers are putting down an average of 23%. Despite the challenges, many buyers still rely heavily on savings for down payments, while others turn to family loans or gifts. Interestingly, 26% of all buyers paid for their homes in cash, highlighting a shift toward cash transactions that can offer a competitive edge in Kern County’s real estate market.

Real Estate Agents Are Key to Navigating the Market

With the market’s complexities, the expertise of real estate agents is proving invaluable. The NAR report found that a record 88% of home purchases involved a real estate agent or broker, emphasizing the role of professionals in helping buyers and sellers make informed decisions. Agents in Bakersfield and Kern County offer not only local market knowledge but also the negotiation skills needed to secure favorable terms in a competitive environment.

Motivations for Selling Have Shifted

The report also shows a shift in sellers’ motivations. Many are now selling to move closer to family or friends, highlighting how family connections have become a stronger influence than proximity to work. For homeowners in Bakersfield considering a sale, this trend can be a great reminder of the local benefits that attract buyers, including a supportive community and a balance of affordability.

Navigating Bakersfield Real Estate in Today’s Market

Whether you’re a first-time homebuyer facing market challenges or a homeowner planning to sell, working with a trusted Realtor in Bakersfield or Kern County can make all the difference. The McCarty Group specializes in guiding clients through these complex trends, ensuring you get the most out of every transaction. Contact us today at (661) 665-SOLD to see how we can help you achieve your real estate goals in Bakersfield’s unique and evolving market!