The Real Story Behind Today’s Market: What NAR’s 2025 Report Really Means for Buyers & Sellers
- Nichole Ehrbar
- 4 days ago
- 4 min read
Every year, the National Association of REALTORS® releases one of the most important snapshots of our industry — the Profile of Home Buyers & Sellers.
And this year’s report makes one thing clear:
We are in a market of extremes.
On one end are buyers coming in strong with cash, equity, and financial power. On the other end are first-time buyers who are being pushed farther and farther from homeownership. These dynamics are shaping real estate nationwide — and we’re feeling the ripple effects here in Hawai‘i too.
Here’s my breakdown of the most important trends and what they mean for you.
1. First-Time Buyers Are at the Lowest Levels Ever Recorded
First-time buyers now make up just 21% of the market — the lowest since NAR started tracking in the early ’80s.
The average first-time buyer is now 40 years old, not 27 or 28 like decades ago.
Between high rents, student loans, and rising home prices, saving for a down payment is harder than ever. In Hawaii, where affordability is already a challenge, this makes the path to homeownership even more delayed.
Bottom line: First-time buyers need more guidance, more preparation, and more strategy than ever.
2. Cash Buyers Are Dominating
Cash purchases are at record highs, averaging 26% of all sales.
These buyers are often taking equity from a previous home and using it to sidestep mortgages entirely.
For sellers, this means:
✔ Faster closings
✔ Fewer financing risks
✔ More negotiating power
For financed buyers, it means the competition is fierce — and strategy truly matters.
3. Buyers Are Bringing in Bigger Down Payments
The median down payment is now:
10% for first-time buyers
23% for repeat buyers
19% overall
These are the highest levels we’ve seen in decades.
A lot of first-time buyers are relying on personal savings, dipping into retirement funds, or receiving gifts from family. Repeat buyers are using equity — and they’re using a lot of it.
4. Real Estate Agents Are More Essential Than Ever
88% of buyers and 91% of sellers used a real estate professional this year — some of the highest numbers we’ve seen.
People aren’t just looking for someone to open doors. They’re looking for someone who can:
• Navigate a shifting market
• Negotiate strategically
• Prevent costly mistakes
• Guide them emotionally and financially
• Spot issues they wouldn’t notice
In today’s market, expertise is everything — and clients want someone they can trust to get it right.
5. FSBOs Are Nearly Extinct
Only 5% of homes sold For Sale By Owner — an all-time low.
And the ones that did sold for far less than agent-represented homes.
With the complexity of today’s market, sellers are realizing that going it alone simply leaves too much money on the table.
6. Repeat Buyers Hold the Power Right Now
Years of rising values have created strong equity positions for long-time homeowners.
The typical seller has owned their home 11 years — and gained over $140,000+ in equity in the last five years alone.
These buyers are bringing big down payments and, in many cases, cash. They are moving the market.
7. Buyers With Children Are Now a Minority
Only 24% of buyers have children under 18 — a huge shift from past decades.
Today’s buyer profile includes more:
• Empty nesters
• Singles
• Older couples
• Relocation buyers
• Investors
• Second-home seekers
This shift directly affects which homes stand out and who your property is most likely to appeal to.
8. Buyers & Sellers Are Older Than Ever
The average:
• First-time buyer: 40
• Repeat buyer: 62
• Seller: 64
Baby boomers, retirees, and equity-rich repeat buyers are shaping the market far more than younger generations.
And here in Hawai‘i? This trend is even stronger.
9. Buyers Are Staying Put Longer
The average buyer plans to stay in their new home for 15 years.
That’s a huge jump from the early 2000s when people moved every five to six years.
Nearly one-third of buyers say they’re buying their forever home.
This shift impacts resale inventory — and the long-term outlook of every community.
10. New Construction Is Back on the Radar
New home purchases have risen to 16% — the highest since 2006.
More buyers are choosing new builds to avoid repairs, get modern efficiency, and customize finishes.
On the Big Island, where unique terrain and older off-grid homes are common, the appeal of new construction is growing.
How This All Plays Into Hawai‘i’s Market
Hawaii amplifies these national trends:
⭐ First-time buyers face even bigger affordability challenges
⭐ Cash and equity-rich out-of-state buyers are incredibly active
⭐ Older buyers and retirees make up a large portion of our market
⭐ Properties are held longer, meaning fewer opportunities come available
⭐ Buyers are prioritizing lifestyle, long-term homes, and quality of life
This is a market where strategy, timing, and strong representation matter more than ever — whether you’re buying or selling.
Final Thoughts
The 2025 report confirms what those of us actively working in real estate already feel:
this is a market split between financial strength and financial struggle.
But there’s opportunity on both sides.
Sellers with equity have incredible power right now.
Buyers with preparation and good guidance can still win in this market.
And first-time buyers — with the right plan — can still secure their future, even in a challenging landscape.
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