2025 has seen a growing split between extremes in the housing market… equity-rich, all-cash buyers are at an all-time high, while cash-strapped first-time buyers are at an all-time low.
The National Association of Realtors’ 2025 Profile of Buyers and Sellers identifies the trends below.
- First-time buyers are at an all-time low, making up just 21% of the market. Before 2008, they consistently accounted for about 40% of home sales. Median age of first-time buyers also rose to a record 40 years old, up from the late 20s in the 1980s.
- All-cash buyers hit record high, at an average of 26% compared to 10% between 2003 and 2010.
- Higher down payments, with a median down payment of 19%… 10% for first-time buyers and 23% for repeat buyers… highest median down payment for first-time buyer since 1989 and highest for repeat buyers since 2003.
- 88% of buyers purchased their home through a real estate agent, who provided critical expertise, negotiation skills and emotional support.
- FSBOs hit record low, with only 5% of homes selling as For Sale By Owner.
- Nearly one in three repeat buyers paid all cash.
- Home buyers and sellers are getting older. Median age of first-time buyers is 40, repeat buyers 62; typical age of sellers is 64. Baby Boomers are the largest share of of both home buyers and sellers.
- Home buyers are planning to stay put longer than ever… an average of 15 years, significant increase over 6 years in 2000-2008.
- Share of new home purchases rose to 16%, matching a level not seen since 2006.
- Fewer households with children are buying homes, just 24% of recent buyers compared with 58% in 1985. Married couples fell to 61% of all buyers and single women comprised 21% and single men 9%.
Source: 2025 Profile of Home Buyers and Sellers, National Association of Realtors
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
