The National Association of REALTORS® recently released its annual profile of home buyers and sellers. This report summarizes the results from a survey of home buyers and sellers who recently completed a transaction between July 2024 and June 2025. In this article, we highlight the key takeaways from the recent report which discusses the trends in a year that was marked by high mortgage rates and rising home prices. These conditions pushed first-time home buyer share to a survey low of 21%. At the same time, many homeowners saw continued equity growth, helping reach an all-time high share of all-cash buyers.
- Home buyer characteristics were affected by changing demographics and housing affordability.
Buyers were predominantly older, with all groups setting record highs for median age – 59 for all buyers, 40 for first-time buyers, and 62 for repeat buyers. Higher mortgage rates and higher price points delayed homebuying for first-time buyers while increased equity allowed more opportunities for repeat buyers. Sixty-one percent of all buyers were married couples, representing the largest share of buyers, followed by single females (21%), single males (9%), and unmarried couples (6%). Furthermore, 76% of recent buyers did not have a child under the age of 18 in their home, the highest share recorded. Desire to own a home remained the top reason to buy a home, especially among first-time buyers.
- Most buyers purchased previously owned homes.
Eighty-eight percent of buyers purchased previously owned homes as they valued better overall affordability. On the other hand, only 12% chose newly constructed homes with their main reason being to avoid renovations. The typical home was built around 1994, which is a rebound after the last two years when buyers typically purchased homes built in the 1980s. The median distance between the home that buyers recently purchased and the home they moved from was 20 miles, which is down from the survey-high of 50 miles in 2022, but remains elevated. While choosing the location of their home, buyers prioritized convenience to the job location less than they used to over the past decade. Buyers expected to live in their newly purchased home for 15 years, and 28% said they do not plan to move again.
- Real estate agents were considered to be the most useful information source in the home buying process.
Most often the home search process began online, but real estate agents were ranked as the most useful information source by recent buyers (85%). The median search duration was 10 weeks, and buyers typically viewed a mix of online and in-person properties. Fifty-six percent of buyers thought that finding the right property was the most difficult aspect of the home-buying process, while 38% of first-time buyers suggested that understanding the steps and process was the most significant challenge.
- Real estate professionals continue to be essential to the home buying process.
Most buyers (88%) purchased via an agent or broker. Buyers primarily wanted agents to help them find the right home, negotiate terms, negotiate price, and manage paperwork. Highlighting the importance of real estate professionals, 54% of buyers said that the agent pointed out issues they might have missed and 76% of first-time buyers appreciated their guidance throughout the process. Forty-three percent of buyers used an agent that they found through a referral, while 18% chose to purchase through an agent they had worked with in the past. The quality of service that real estate agents bring to the home buying process is made clear by the fact that more than 9 out of 10 buyers would use their agent again.
- Twenty-six percent of home buyers paid all-cash for their home, continuing an all-time high.
Ninety-two percent of first-time buyers financed their home purchase, while only 70% of repeat buyers financed. The median down payment for first-time buyers was 10%, the highest since 1989. At the same time, the median down payment for repeat buyers was 23 percent, the same as last year. Twenty-six percent of first-time buyers used financial assets such as a 401k, stocks, IRA, or cryptocurrency towards their down payment, while savings were the most common source at 59%. The share of first-time buyers using an FHA loan decreased to 28% from 55% in 2009. Buyers continue to believe that purchasing a home is a good financial investment.
- People have been staying in their houses for longer – the median number of years that a seller owned their home was 11 years, an all-time high.
The typical age of home sellers was 64 years, which is the highest ever recorded. Sixty-six percent of the home sellers reported moving within the same state. Most sellers sold their home to move closer to friends and family, because they had outgrown their previous home, or because of a change in family situation. Sellers sold their homes for a median of 99% of listing price and the recently sold homes were on the market for a median of four weeks, staying on the market for one week longer than last year.
- Real estate agents provided a broad range of services and management of most aspects of home sales.
Sixty-six percent of sellers found their agent through a referral or used an agent they had worked with in the past. While working with real estate agents, sellers placed a high priority on helping market the home to potential buyers, pricing the home competitively, and selling the home within a specific period. Thirty-five percent of sellers emphasized the importance of the real estate agent’s reputation as a deciding factor in their selection process.
- For-Sale-by-Owner (FSBO) sales represented a small share of all home sales.
Only 5% of recent home sales were FSBO sales, a historic low. While agent-assisted homes sold for a median of $425,000, FSBO homes sold for a median of $360,000. The main reason for selling via FSBO for 30% of FSBO sellers was that they sold to a friend, relative, or neighbor. Some of the most difficult steps for FSBO sellers were getting the price right, preparing the home for sale, and selling within the length of time planned.
For more information on housing, demographic and economic trends in Virginia, be sure to check out Virginia REALTORS® other Economic Insights blogs and our Data page.
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