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First-Time Homebuyers in Texas Stay at Historic Low Levels

The proportion of first-time homebuyers in Texas continued to hover around historic lows, accounting for only 21% of all home purchases in 2025. This figure is just slightly above the previous year's low of 20%, according to the Texas REALTORS® 2026 Home Buyers and Sellers Report, released on April 15, 2026. Interestingly, this trend is not isolated to Texas, as data shows a national increase in the average age of homebuyers, with Texas buyers averaging 58 years old, tying the record set in 2024. Meanwhile, the national average reached 59 years old, reflecting a significant demographic shift that raises questions about accessibility for younger buyers.

Jennifer Wauhob, President of Texas REALTORS®, explained that many first-time homebuyers were absent from the real estate market during the pandemic. With historically low mortgage rates and rapid home value increases at that time, it has resulted in a backlog of potential first-time buyers feeling left behind.

Contributing to the situation are existing homeowners, who have seen their equity rise significantly and are now choosing to sell their properties to capitalize on their investment. This trend indicates that many move-up buyers are now able to make substantial down payments on their next home, thereby shaping the market in a unique way.

Record Cash Sales

The influx of cash transactions also marked a significant trend. By 2025, 30% of homes purchased in Texas were bought entirely with cash. This is a staggering increase compared to just 14% in 2017, underscoring the notable shift in how homes are being financed. The rising proportion of cash transactions indicates greater financial stability among buyers who are opting out of traditional mortgage paths, allowing them to navigate the market with less dependency on financing options, which have grown increasingly complex.

Pressure on Sellers to Adjust Pricing

The market has not been without its challenges for sellers, either. Approximately 74% of sellers reduced their asking prices at least twice before successfully finalizing a sale, a significant jump of 53 percentage points from the previous year. Additionally, another 18% had to reduce their prices at least once.

Wauhob noted that, while the national average for sellers has risen to an unprecedented 11 years of living in their homes before selling, rising inventory levels have led to shifting expectations among both buyers and sellers. The competitive landscape is prompting many to rethink their strategies when it comes to pricing, particularly as new listings become available. A discerning approach remains essential in this unpredictable market.

High Satisfaction Rates with Real Estate Agents

Despite these challenges, both buyers and sellers exhibited strong satisfaction rates with the home-buying process. According to the report, a whopping 91% of sellers and 93% of buyers expressed contentment with their experiences. Customer ratings for individual real estate agents were similarly impressive, as 87% of sellers and 90% of buyers stated they would likely choose the same agent in future transactions.

This demonstrates a commitment to customer service and the overall effectiveness of REALTORS® in guiding both parties through the complexities of the home-buying and selling experience.

Insights from the 2026 Home Buyers and Sellers Report

The findings in the 2026 Home Buyers and Sellers Report are based on responses gathered from the National Association of REALTORS®' Home Buyers and Sellers Profile survey, which analyzes transactions made between July 2024 and June 2025. The results offer invaluable insights into the trends driving the Texas real estate market today, particularly for first-time homebuyers.

About Texas REALTORS®

With a membership exceeding 145,000 professionals, Texas REALTORS® is a statewide organization that champions the interests of REALTORS® and private property rights in Texas. Their advocacy plays a critical role in shaping policies and practices within the real estate sector.

For any further inquiries or detailed analysis, please contact David Gibbs at the Hahn Agency or visit the Texas REALTORS® official website.