2025 National Profile of Buyers

Every year, the National Association of Realtors (NAR) creates an annual survey of recent home buyers and sellers. The most recent survey was from those who bought/sold homes between July 2024-June 2025. The numbers were… interesting. Here are some key takeaways on the buyers side:

FIRST-TIME HOME BUYERS

• First-time buyers shrank to a historic low: 21% of all buyers, due to lack of affordability and limiting housing inventory. Prior to 2008, it was the norm to see 40% of buyers being first-timers.

• First-time buyers' age has risen to the highest recorded, with a median age of 40 years old. We've watched this number creep higher in recent years. In the 1980s, the typical first-time home buyer was in their late 20s.

• First-time buyers cite that rising rents, student loans, credit card debt, car loan, health care costs, and/or childcare costs have held them back from saving. Debt delayed first time buyers a median of four years.

If you've been waiting on the sidelines to buy, you're not alone. I'm happy to chat about what options might be available to you now.

ALL HOME BUYERS (FIRST TIME AND REPEAT COMBINED)

• The median buyer's age was 59 years old (versus 62 years old for repeat home buyers).

• 61% are married couples, 21% are single women, and 9% are single men.

• 14% of home buyers purchased a multi-generational home to care for aging parents (41%), cost savings (29%), adult children moving back home (27%), and to spend more time with aging parents (23%).

• The share of home buyers with children has shrunk to an all-time low of 24%, likely due to a reduction in birth rates and a rise in older repeat buyers.

• Buyers expected to live in their homes for a median of 15 years.

Today's buyer looks quite different than the TV image of a young family buying their starter home. With a median age of 59 and fewer households with children, the market is increasingly driven by people making long-term lifestyle decisions—downsizing, relocating, or planting roots near family. Whatever your reason for buying, it's worth being intentional about the 15-year commitment most buyers are making.

HOMES PURCHASED

• 76% of homes were detached single-family homes.

• The median size of a home was three bedrooms and two baths with 1,900 square feet.

• Buyers said that the top factors influencing the location of their home is the quality of the neighborhood and the convenience to friends/family.

While homes tend to be a bit smaller on the Peninsula overall, these top influential factors ring true for our area too—beyond the ocean, clean air, and moderate climate, buyers here consistently tell me that neighborhood feel and being close to the people they love are what matter most.

HOME BUYING PROCESS

• Buyers spent a median of 10 weeks searching for a home.

• Nearly all buyers used the internet during their home-buying search, primarily on mobile/tablet devices.

• Open houses, while not as popular as they once were, were still deemed very useful by 43% of buyers.

• Finding the right property was considered the most difficult aspect of the home-buying process. First-time buyers found understanding the process and steps to be a challenge, as well as saving for a down payment.

Ten weeks of searching sounds manageable, but for many buyers it feels much longer—especially when you lose out on a home you loved. The buyers who tend to have the smoothest experience are the ones who get prepared early: pre-approved, clear on their priorities, and working with an agent who knows the local inventory well before the right listing hits.

FINANCING THE HOME

• 74% of buyers financed their homes. First time buyers were more likely to finance (92%).

• The median down payment among all buyers was 19% - 10% for first time buyers and 23% for repeat buyers. This is the highest down payment for first-time buyers since 1989 and the highest down payment for repeat buyers since 2003.

• 26% of buyers paid cash for their home - another all-time high.

• 46% of home buyer used savings to help finance their home purchase.

• 26% of first-time buyers used financial assets (such as a 401k, stocks, IRA, or crypto) as their downpayment.

• 22% of first-time buyer used a gift or loan from a relative or friend for their down payment.

• 40% of first-time buyers and 70% of repeat buyers stated that they did not need to make any financial sacrifices (such as cutting back on luxury items, entertainment, travel) to purchase a home.

• The biggest reason buyers were rejected by a mortgage lender was debt-to-income ratio followed by low credit score.

The rise in cash buyers and larger down payments reflects how much equity existing homeowners have built up. If you're a first-time buyer competing against cash offers, strategy matters more than ever.

USING A REALTOR

• 88% of buyers purchased their homes with a real estate agent. They wanted help finding the right home, negotiating the terms of the sale, but also help with price negotiations and paperwork.

• 43% were referred to their real estate agent by a friend, neighbor, or relative. (Note: I'm always happy to receive your referrals!)

• 76% of buyers would definitely use their agent again, and 15% would probably use their agent again.

• 62% of home buyers who have purchased within the last year have already recommended their agent to their friends/family/network.

It's encouraging to see that most buyers walk away happy with their agent experience, but it's always worth asking why before you hire anyone. The buyers who get the most value from their agent are the ones who choose their agent intentionally, not just whoever picked up the phone first.

Overall, these numbers tell a story of a nationwide market that's becoming harder to enter. It's certainly not fair, and we need policy change. And those who do enter, are clearly rewarded. If you're curious what this means for your specific situation—whether you're a first-time buyer feeling priced out, or a repeat buyer sitting on equity—I'd love to help you think it through.

Thanks for reading!

Ashley