A Tale of Two Markets: What Today’s Real Estate Trends Mean for Buyers and Sellers in 2025

The latest report from the National Association of Realtors (NAR) just dropped, and it paints a pretty dramatic picture of today’s market: first-time homebuyers are hitting record lows, while all-cash buyers are reaching record highs.



If you’ve been feeling like the housing market is harder to navigate than ever, you’re not imagining it — things are shifting fast.

Let’s break down what this means for you.

First-Time Buyers Are Struggling More Than Ever

According to NAR’s 2025 Profile of Home Buyers and Sellers:

• Only 21% of buyers this past year were first-timers — the lowest share since the survey began in 1981.
  
  
• The median age of a first-time buyer is now 40, compared to late 20s in the 1980s.
  
  

Why it matters:
Rising prices, higher mortgage rates earlier in the year, and limited affordable inventory have made entering the market more difficult. Many first-time buyers are relying heavily on savings and often need to wait longer to build enough financial stability to purchase.

Meanwhile, Cash Buyers Are Dominating

The report also shows:

• 26% of all homebuyers paid in cash — the highest level ever recorded.
  
  
• Among repeat buyers, 30% paid full cash for their next home.
  
  
• Over half of repeat buyers used equity from a previous sale to fund their purchase.
  
  

Why this is happening:
Homeowners who bought years ago have gained massive equity thanks to long-term price appreciation. When they sell, they’re able to roll that wealth into their next home, often avoiding financing altogether.

This is widening the gap between buyers entering the market for the first time and those returning with equity power behind them.

Homeowners Are Staying Put Longer

Another big shift:

• Homeowners now stay in their homes for a median of 11 years — the longest on record.
  
  

Holding onto homes longer contributes to lower inventory and gives longtime owners even more equity growth, feeding the cycle of strong cash positions among repeat buyers.

A Changing Market in Late 2025

Keep in mind: the NAR data covers July 2024 to June 2025. But the market is already shifting.

Here’s what’s happening now:

• Home-price growth is cooling — up only 2% year-over-year as of September.
  
  
• Inventory is rising, now above pre-pandemic levels.
  
  
• Mortgage rates have eased back into the low to mid 6% range, making affordability slightly better.
  
  
• Loan demand is increasing, a sign that more buyers are stepping back in.
  
  

These shifts could open new opportunities for buyers who felt squeezed out earlier in the year.

What This Means for You

If You’re a First-Time Buyer

Don’t get discouraged — conditions may slowly be improving. Inventory is better, and competition from cash buyers may cool as rates stabilize. A strong strategy and pre-approval are key.

If You’re a Homeowner Thinking of Selling

Your equity is your superpower right now. That wealth can position you for a competitive move-up purchase or even a full cash buy.

If You’re a Repeat Buyer

You’re in one of the strongest positions in the market. Leveraging equity could offer more flexibility, better terms, and faster closings.

The Bottom Line

The 2025 housing market is divided — but also full of openings for the right buyers and sellers. With inventory rising and rates calming, the next few months may offer a more balanced landscape than we’ve seen in years.

If you're planning your next move — or wondering how these trends affect your buying or selling power — now is the perfect time to reach out. I’m here to walk you through the numbers and help you strategize with confidence.