Title Abstract and Settlement Offices NAICS 541191

Nov 23, 2025 - Hurdles Mount for First-Time Home Buyers

• The National Association of Realtors' 2025 Profile of Home Buyers and Sellers reveals a sharp decline in first-time home buyers, now just 21% of home purchases, with a median age of 40. This shift reflects deep challenges of affordability and a market increasingly dominated by older, equity-rich repeat buyers. Sellers are staying in their homes longer, 11 years on average, further limiting inventory turnover. Buyers with cash and assets are driving transactions, while younger would-be purchasers struggle to enter the market, delaying wealth-building and reducing lifetime mobility. Policymakers are urged to address supply constraints by unlocking inventory, streamlining zoning regulations, and facilitating faster and more affordable construction. The data underscores a bifurcated market and signals long-term shifts in buyer demographics, transaction volume, and housing wealth distribution.
• Sales of existing US homes increased by 1.2% in October from September and were up 1.7% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates. First-time homebuyers are facing headwinds in the Northeast due to a lack of supply and in the West because of high home prices. First-time buyers fared better in the Midwest because of the plentiful supply of affordable houses and in the South because there is sufficient inventory."

• Home-purchase cancellations are rising nationwide, with 15% of deals falling through in September, up from 13.6% a year earlier, according to Redfin and reporting by The Wall Street Journal. Economic uncertainty, job insecurity, and high home prices are making buyers more cautious, while sellers with low mortgage rates feel little urgency to negotiate. Buyers now have more leverage due to increased inventory, but deals often collapse over inspection disputes or unexpected costs. Sellers risk longer listing times and buyer skepticism. In Florida, cancellations are especially high, while areas with less new construction see fewer withdrawals. Agents recommend pre-inspection reports and backup offers to reduce cancellations. Despite a slight sales uptick from lower mortgage rates, both buyers and sellers remain hesitant, reflecting deepening uncertainty in the housing market.
• America’s largest homebuilders are struggling to sell new homes despite offering 4% mortgages and deep discounts, according to The Wall Street Journal. D.R. Horton and Lennar have slashed prices and added incentives, but demand remains weak, pushing unsold inventory to levels last seen in 2009. Builders are slowing construction, with D.R. Horton cutting starts by 21% year over year for the three-month period through September. Regional gluts in Texas, Florida, Southern California, and Washington, DC reflect rising resale competition, fewer foreign buyers, and economic uncertainty. Investor activity is at a 15-year low, with institutional buyers demanding steep discounts that builders won’t meet. New homes, often located in less desirable areas and targeted at first-time buyers, are more challenging to sell.