The National Association of REALTORS® just dropped the 2025 Profile of Home Buyers and Sellers, and the data paints a clear picture: the real estate market is split between equity-rich repeat buyers and cash-strapped first-timers. Here's the full breakdown, what it means, and how to act on it.
Major Findings & Trends
NAR’s 2025 Profile fast facts show:
First-time buyers: Only 21% of buyers—a historic low. Median age is 40 (highest ever).
Repeat buyers: Now ~79% of all buyers, median age is 62.
All-cash purchases: At record highs (~26% of home sales).
Median down payments: 10% for first-timers (highest since 1989), 23% for repeat buyers.
Household composition: Only 24% of buyers have children under 18. Multi-generational purchases dropped to 14% (from 17%).
Market Context
Inventory remains tight.
Mortgage rates hover around 6.7%.
Limited supply + high prices = fewer first-time buyers and more cash buyers.
First-Time Buyers
Median age: 40
Share: 21%
Barriers: affordability, rent, student debt, credit cards
Down payment: 10%
Funding sources: personal savings (59%), financial assets (26%)
Repeat Buyers
Share: 79%
Median age: 62
Down payment: 23%
30% pay all cash
Most move for family or retirement
Household Composition
61% married couples
21% single women buyers
24% have children under 18
14% bought multigenerational homes (mainly for elder care or savings)
Sellers
Median time in home before selling: 11 years (record)
Move distance: ~30 miles
Next homes: 50% buy newer homes, 34% go bigger
91% used agents; only 5% sold FSBO
Use of Agents
88% of buyers used an agent
Top buyer needs: finding the right home (50%), negotiating (13%)
91% of sellers used agents, citing pricing and marketing as top needs
Buyer TypeShareMedian AgeDown PaymentAll-CashWith Kids (<18)First-time21%4010%Low32%Repeat79%6223%30%22%All buyers100%59 avg.~19% est.26%24%
Strategic Insights
For Real Estate Agents
Educate on financing: Focus on savings (59%) and investments (26%). Show how to use 401(k)s, IRAs, or gift funds.
Inventory skills: Only 21% of buyers are first-timers. Use MLS alerts, social tools, pocket listings. Median search takes 10 weeks.
Negotiate and lead: 90%+ use agents. Teach price negotiation, contract structuring.
Connect with older first-timers: Median age is 40. Highlight retirement, long-term benefits. 32% have kids.
Explain agent value vs. FSBO: Only 5% go FSBO. 60% of those already knew their buyer. FSBOs sell for less. Make the case for your full-service value.
For Brokerages
Train smarter: Emphasize inventory sourcing and handling high down-payment offers.
Support first-time buyers: Offer or partner on down payment programs. Host workshops.
Promote agent ROI to sellers: FSBO is at 5%. Agents help with marketing, pricing, timing.
Target older buyers: Focus marketing on empty-nesters and retirees with equity.
Upgrade your tech: Virtual tours, digital CRMs, and smart alerts speed up the sales cycle.
For Investors
Prepare for all-cash competition: 26% of buyers are all-cash. Stay sharp with capital or lending partners.
Expect longer holds: Median tenure is now 11 years. Focus on renovation plays or secondary markets.
Watch shifting demand: Fewer families, more singles and retirees. Rethink rental and development strategies.
Monitor incentives and distress: Builders are offering rate buydowns. High rates may push some listings onto the market.
Housing Policy Implications
Affordability is key: 21% first-time buyers is unsustainable. We need zoning reform, supply, and starter homes.
Down-payment help: 10% down is a stretch. Push grants, tax credits, and flexible loans.
Rental support: Rent is a savings killer. More rental supply and tenant support frees up future buyers.
Multigenerational incentives: Only 14% are buying this way. Tax credits for in-law suites or ADUs could help.
Serve aging homeowners: Median buyer age is 62. Offer downsizing tax breaks, reverse mortgage education.
Level the playing field: Expand access to credit counseling and enforce fair lending rules.
Training Takeaways for Agents
Talk down payment reality. Help clients explore savings, retirement funds, employer help.
Prepare for older, more selective first-time buyers.
Use the low FSBO rate to show why agents matter.
Master negotiation. 13% of buyers want it. Practice it.
Ask buyers what matters most in neighborhoods. School quality, walkability, and proximity to family top the list.
Help manage expectations. Long mortgage lock-ins mean less turnover.
Need help making sense of it all?
Whether you're an agent, buyer, seller or investor—I'm here to help.
Schedule a consult or learn more at darylwizinsky.com
Sources:
https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
https://www.nar.realtor/newsroom/first-time-home-buyer-share-falls-to-historic-low-of-21-median-age-rises-to-40
https://www.nar.realtor/blogs/economists-outlook/top-10-takeaways-from-nars-2025-profile-of-home-buyers-and-sellers
