Real Estate Trends That Shaped Home Buying in 2025, and What Carries Into 2026

Updated October 2026. The real estate trends that shaped home buying in 2025, checked against NAR’s 2025 Profile of Home Buyers and Sellers, and which of them are still shaping the market in late 2026.

The biggest trend in 2025 home buying was who could buy. First-time buyers fell to a record-low 21% of purchases and their median age hit 40, while all-cash buyers reached an all-time high (NAR, 2025 Profile). As of October 2026, rates are higher still: Freddie Mac’s 30-year average was 7.32% on October 22.

Jump to: 🏠 Who’s buying · 💲 Down payments · 🤝 Buyer agents · 📸 Tech and AI · 🪜 How people live · ❓ FAQ

Trend lists often lead with the flashy stuff. The data tells a plainer story. Prices stayed high, rates stayed high, and the buyers who did well in 2025 were the ones with equity or cash. Here’s what changed, what’s hype, and what it means if you’re buying in 2026.

Who was buying homes in 2025?

Older, wealthier buyers. NAR’s 2025 Profile of Home Buyers and Sellers covers purchases from July 2024 through June 2025. First-time buyers made up just 21%, the lowest share on record, and their median age climbed to 40. NAR’s research team noted the first-time share had shrunk by half since 2007.

Repeat buyers were a different story. Their median age was 62, they put a median 23% down, and 30% paid all cash. NAR summed up the split as an all-time high of all-cash buyers next to an all-time low of first-time buyers. Only 24% of all buyers had children under 18 at home, also a record low.

Sellers stayed put longer too. The typical seller had owned for 11 years before selling, the longest ever recorded. Long tenure means fewer homes coming up for sale, which keeps inventory tight in many areas.

How did buyers pay for their down payments?

Mostly from savings. Among first-time buyers, 59% used personal savings, 26% tapped financial assets such as a 401(k), stocks or cryptocurrency, and 22% got gifts or loans from family and friends. If that’s your plan, see what selling stock for a down payment means for your taxes. Their median down payment was 10%, matching the highest level since 1989.

That 26% is where crypto shows up in real data. It isn’t a new way to buy a house. It’s one more asset some buyers sell to fund a down payment. If you plan to do that, talk to your lender first: they’ll want to see where the money came from and that it’s sitting in your account before closing.

Help still exists for buyers short on cash. Many states and cities run down payment programs, and our down payment assistance programs guide for first-time buyers is a good place to start. If your credit file is thin, read how to buy a house with no credit history, and compare loan types before you apply.

How did the buyer-agent rules change home buying?

Since August 17, 2024, buyers touring homes with an MLS agent sign a written agreement first. It says what the agent will be paid and that the fee is negotiable. Offers to pay buyer agents can’t be shown on the MLS anymore. So buyers now ask, offer by offer, whether the seller will cover their agent.

Most buyers still used one. NAR found 88% of all 2025 buyers worked with an agent or broker. If you do, the commission the seller offers can work in your favor. The Beycome buyer program has no upfront fee. On homes listed by other agents, Beycome keeps 1% of the price (minimum $1,499) and credits the rest of the buyer-agent commission at closing, with lender approval. On a $400,000 home with 3% offered, that’s $8,000 back.

That’s an example only: commissions are not set by law or NAR rules and are negotiable, and sellers choose whether to offer anything. The credit can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers.

Did technology and AI change how people buy?

Some. Online search, video tours and e-signatures are now standard parts of buying a home. Automated tools have gotten better at reading market data. Forbes Tech Council writers describe how AI can generate market insights and real-time property valuation models. These estimates are a starting point, not an appraisal. Your lender will still order one.

Use the tools for what they do well. Set alerts for new listings, compare recent sales, and track price drops. Then check the house in person, read the disclosures and get an inspection. Our look at tech innovations in real estate covers more of the tools.

How are people choosing where and how to live?

Closer than you might think. The median seller moved just 30 miles in 2025, down from 35 the year before. Half bought a newer home and 34% a larger one. The “everyone is leaving the city” story is real for some, but most moves are local.

Multigenerational buying cooled a little. 14% of buyers purchased a home for several generations, down from 17% in 2024. The top reasons were caring for aging parents (41%), saving money (29%) and adult children moving back (27%). If that’s your plan, look for a separate entrance, a bedroom and bath on the main floor, and room to grow.

Other ideas got a lot of press: fractional ownership, rent-to-own deals and co-living. They can work for some people, but terms vary widely and the contracts can be one-sided. Read every page, and have a real estate attorney review anything that ties rent to a future purchase. A condo can also be a simpler first step; see the pros and cons of condo living for first-time buyers.

What did 2025 look like from the seller’s side?

Sellers held most of the cards in 2025, mainly because so few homes came up for sale. The typical seller had owned for 11 years. Many had low-rate mortgages and plenty of equity, which is exactly what let so many repeat buyers pay cash or put 23% down on the next place.

Most sellers hired help. NAR found 91% used an agent, equal to the highest share on record. Selling by owner is the other path, and it’s legal everywhere we work. Do you need a realtor to sell? No, it’s not required; it’s your choice. An agent prices, markets and negotiates for a commission you agree on. By owner, you do those jobs, often with an attorney or title company for the paperwork, and a flat fee MLS listing to reach the same buyers agents search for. Beycome lists in 17 states and DC, and more than 22,000+ homeowners have used it.

What does this mean if you’re buying in 2026?

Buyers have a little more room to negotiate than in 2025. In September 2026, NAR counted a 4.8-month supply of homes, up from 4.5 a year earlier, and its chief economist said higher inventory gives buyers “improved negotiating power.” The trade-off is rates: 7.32% on October 22, 2026, versus 6.19% a year earlier (Freddie Mac).

So get pre-approved before you shop, know your monthly limit at today’s rate, and ask for seller credits where a home has sat. Selling one home to buy the next? Our guide to buying before you sell covers the timing, and a flat fee MLS listing from $99 keeps your selling costs down.

Home buying trends: common questions