The latest NAR Profile of Home Buyers and Sellers for 2025 shows a housing market marked by sharp contrasts—cash-rich repeat buyers on one side, and affordability-strained first-time buyers on the other. Here are the trends shaping real estate this year.

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1. First-Time Buyers Are at a 40-Year Low

Only 21% of recent buyers were purchasing a home for the first time—down from historical averages around 40%. The median first-time buyer age is now 40, reflecting how long it takes to save in today’s market.
Why it matters: Sellers should expect demand to be driven more by repeat buyers, while entry-level buyers need strategic planning and strong pre-approvals to compete against cash buyers.

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2. Cash Offers Continue to Transform the Market

A record 26% of homes were bought with all cash, driven largely by older buyers leveraging equity from previous homes.
Why it matters:

• Sellers may favor cash for its speed and certainty.
• Financed buyers need strong pre-approvals, flexible terms, and competitive strategies to stand out.

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3. Down Payments Are the Highest in Two Decades

The median down payment reached 19%, with repeat buyers putting down 23% on average. Significant equity gains—often over $100K in the last five years—give repeat buyers a major advantage.
Why it matters: If you’re a first-time buyer, early planning and exploring down payment programs can help close the gap. For sellers, equity-strong buyers may come in with fewer contingencies and faster timelines.

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4. Buyers and Sellers Are Older—and More Equity-Driven

Repeat buyers now have a median age of 62, and the typical seller is 64. Lifestyle-driven moves—downsizing, relocating, and seeking low-maintenance homes—are shaping inventory and demand.
Why it matters:

• Expect more competition for single-level homes or properties with accessibility features.
• Sellers should keep in mind that older buyers often prioritize turnkey condition over renovation projects.

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5. New Construction Is on the Rise

16% of homebuyers purchased new construction—the highest share since 2006. Builders are offering mortgage rate buydowns and other incentives to attract buyers frustrated with low resale inventory.
Why it matters:

• Buyers get move-in-ready homes and predictable maintenance costs.
• Sellers of older homes face more competition and must focus on condition, updates, and pricing strategy.

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What This Means for You

If you’re thinking about buying:
You’ll be competing in a market shaped by strong cash positions and aging repeat buyers. Preparation, flexibility, and early financial strategy are key.

If you’re thinking about selling:
Well-priced, well-prepared homes are still moving quickly—especially among older, equity-strong buyers. Positioning your home effectively can help you stand out against both resale and new construction options.

Click to read the full 2025 Housing report

Click to read the 2024 NAR Housing Report

Contact Laura to Learn More!