What Last Year’s NAR Report Can Teach Us
Being the market expert of choice is key in gaining clients and closing transactions. One of the best ways to stay on top of market trends is by viewing the National Association of REALTOR’s ® (NAR) Profile of Home Buyers and Sellers. It is an expert’s friend because it gives insight into the market at large. It also provides a review of the current habits of buyers and sellers across the country. The story of 2025’s report is one of peaks and valleys. Let’s dive into the disparities so we can better understand how to tackle the year ahead.
1. Record Low for First-Time Buyers, Record High for All-Cash Buyers
According to NAR, first-time home buyers made up 21 percent of the market in 2025. This is the lowest it’s been since NAR started tracking data in 1981. On top of this, the average age for a first-time buyer is much higher, at 40. The reasoning behind these stats can largely be attributed to high rent, stagnant income, and student loan debt which make it hard to save up for a down payment. Also, inventory remains low while many new buyers are weary of higher mortgage rates making their monthly payments unaffordable.
On the flip side, and potentially as a way to bypass high mortgage rates and finicky lending options, all-cash home purchases have reached a record high of 26 percent, more than double the percentage recorded between the years 2003-2010 (when it was less than 10 percent).
As an agent, this means you’re going to be dealing with financing issues and an evolving understanding of who is a first-time buyer. While there are plenty of people who purchase their first home in their twenties, the data shows that these are not average. Ask yourself, “Is my outreach for this type of client appropriate for someone who is forty?”
2. FSBOs Drop, Agents Remain Essential
Another record indicates that For Sale By Owner properties dropped to a low of 5 percent while 91 percent of sellers used a real estate agent, a record high. Buyers also leaned heavily on agents, with 88 percent using an agent for their transaction. For sellers, their top priorities when hiring an agent were marketing the home to potential buyers, pricing the home competitively, and selling within a specific timeframe. This may be why FSBOs were at a record low this year, with a median price of $360,000, while agent-assisted sales had a median selling price of $425,000. For buyers, priorities when hiring an agent were help with finding the right home, negotiating terms, and navigating paperwork.
For you, this insight means that your marketing material should explain how you help your clients as an advocate in negotiations and a guide to all the forms to come. You can also reach out to past clients and ask for reviews based on whether they think their home is “right” for them and stories about how you helped them find it.
3. Households Shifting in Priority and Composition, but Racial Disparity Still Staggering
There are quite a few significant shifts in profiles for buyers and sellers. As mentioned before, first-time buyers have risen to a median age of 40, while the median age of repeat buyers also rose to 62. The median age for sellers is up to 64, the highest ever recorded. However, racial disparity among recent home buyers remains large, with 84 percent identifying as white/caucasian, 7 percent as Hispanic/Latino, 6 percent as Black/African-American, 4 percent as Asian/Pacific Islander, and 3 percent as another ethnicity.
Several factors can be considered contributors to these changes. According to another NAR report, baby boomers often have a better financial standing than younger generations and remain the largest share of home buyers and sellers. But while baby boomers make up the largest portion of transactions, it’s important to note that there is movement away from “traditional” family households (married with children) that points toward a more diverse range of household makeups. With childcare costs remaining high and a reduction in birth rates across the country, buyers with children under the age of 18 have dropped to a record low of 24 percent. And while single women buyers rose to 21 percent and single men to 9 percent, married couples dropped to 61 percent. More buyers are also emphasizing their “forever homes” with a median expected tenure of fifteen years. This may mean a shift away from the idea of starter homes or more frequent moves.
To work with the ever-changing landscape of who makes up a household in your market, it’s crucial to keep your commitment to equity and creating win-win scenarios top-of-mind when helping clients—particularly those from marginalized communities. If you want to help bridge the homeownership gap, start with creating local partnerships, reporting injustices, and connecting with your community. These actions aren’t just inclusive—they’re good business practices that can have a big impact. And when helping people find the right home or sell their property, use language that connects with them specifically instead of blanket terms like husband/wife or assuming someone will want to have children in the future.
Being up-to-date on the most recent housing trends and statistics will help you remain the agent of choice who knows how to maneuver any market and work with a diverse array of clients. This nationwide data, combined with your local expertise, should always be part of the value you offer the people you work with.
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