Equity-rich, all-cash buyers are surging; first-time buyers are shrinking. NAR’s newly released 2025 Profile of Home Buyers and Sellers shows a market pulled to the extremes—and it has clear implications for how REALTORS® advise clients in Greater Pasadena.
Key takeaways
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First-time buyer share hits an all-time low: 21%. Before 2008, first-timers were ~40% of the market. Affordability and inventory constraints are the culprits.
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All-cash purchases reach a record 26%. Cash and large equity positions are winning offers and skipping mortgages. National Association of REALTORS®
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Down payments climb. Median down payment is 19% overall (10% for first-timers; 23% for repeat buyers).
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Agents remain essential. 88% of buyers used a real estate professional; 91% of sellers listed with an agent. FSBOs fell to 5% and sold for less (FSBO median $360k vs. $425k with an agent).
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Older, more patient buyers. Median age: 40 (first-time) and 62 (repeat). Expected tenure in the new home: 15 years; typical seller owned 11 years before selling.
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Households with kids at historic lows. Only 24% of recent buyers had children under 18; single women (21%) and single men (9%) gained share.
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Equity tailwind. Homeowners gained an average $140,900 in wealth over five years, boosting repeat-buyer power. National Association of REALTORS®
What this looks like in our market
Competitive listings favor equity-heavy buyers. If you’re representing sellers, expect stronger terms (cash/large down payments, fewer financing contingencies). If you’re guiding buyers, pre-approval isn’t enough—creative strategy and speed matter when bidding against cash.
Affordability is the first-timer’s wall. With first-time buyers at a record low share, counseling around down-payment assistance, rate buydowns, and realistic search criteria is more critical than ever. Inventory and supply policy remain the long-term unlock.
FSBOs aren’t winning. The data shows agent-assisted sales achieve higher prices and remain the dominant path. Use this as a conversation starter with “DIY-inclined” owners.
Demographics are shifting. Older repeat buyers (and more single buyers) change everything from product preference to marketing channels. Staging, accessibility features, and neighborhood lifestyle content can carry more weight than “starter-home” messaging. National Association of REALTORS®
How REALTORS® can respond—now
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For first-time buyers: Pair lenders early, map total monthly cost scenarios, and explore DPA programs; set expectations on condition/commute trade-offs. National Association of REALTORS®
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For move-up/downsizers: Leverage equity. Consider bridge solutions or sequencing a sale-then-buy with rent-backs to keep offers clean. National Association of REALTORS®
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For sellers: Price to the lane you want (cash/large-down buyers) and highlight features that reduce ownership friction (energy, maintenance, accessibility). National Association of REALTORS®
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For FSBO-curious owners: Share the data on price gaps and agent usage; offer a no-obligation market prep and pricing consult. National Association of REALTORS®
Why this matters
NAR’s profile is a rear-view mirror of July 2024–June 2025 transactions—a clear picture of who actually bought and sold, not just headlines. Use it to sharpen your scripts, pricing strategies, and marketing plans for Q4 and early 2026.
by Jay Valdeavilla | Nov. 6
Source
NAR: “2025 Profile of Home Buyers & Sellers Reveals Market Extremes,” published Nov. 4, 2025.
