First-Time Buyers Hold 31% of Sales as Cash Deals Slip
Who is buying matters almost as much as how many homes change hands. The September data from the National Association of Realtors shows first-time buyers at 31% of existing-home sales, up from 30% in August and a year ago, while all-cash purchases fell to 27% from 30% in September 2025, per the NAR release. Those two shares describe the edges of the market, with newcomers who depend on financing at one end and buyers who need no loan at the other.
Neither movement is dramatic, and a single month cannot establish a trend. Together, though, they offer a useful snapshot of how the buyer pool looked as mortgage rates climbed toward 7%, and they raise practical questions for anyone preparing to buy a first home on the North Shore or elsewhere on Long Island.
A slightly larger share for first-time buyers
One percentage point of market share sounds small. It still stands out in a market where the typical buyer has been described for several years as older, wealthier and often carrying equity from a previous home. A first-time buyer has no such equity to roll forward, which means the down payment, closing costs and monthly payment all come out of savings and income. Seeing that group hold 31% of sales while rates rose suggests that demand from newcomers has not disappeared, even if it has become more selective.
The Realtor.com video above ranks metro areas by starter-home affordability, a reminder that where a first-time buyer shops can matter as much as when. Prices on Long Island run well above the national median, so the same share of first-time buyers can represent very different budgets from one region to another.
Fewer cash buyers
Cash transactions represented 27% of September sales, unchanged from August and three points lower than a year ago. Buyers who pay cash do not depend on mortgage rates, so the decline can reflect investors stepping back, or it can reflect more financed buyers returning to the market. The release does not say which explanation applies, and one month of data cannot settle the question.
The distinction matters for competition. A seller who receives an all-cash offer gains certainty on financing and often on timing, while a financed buyer brings an appraisal and a lender into the process. As the cash share shrinks, financed buyers face somewhat less of that particular advantage, though it remains more than a quarter of the market.
Time on the market
The median home spent 33 days on the market in September, up from 31 days in August and flat with a year earlier. The release does not explain the two-day change. A month is a reasonable window to keep in mind, though: a home that has been listed for several weeks has probably been seen by most of the buyers actively searching, which can shape how a seller approaches pricing and how a buyer approaches negotiation.
Preparing to buy in a high-rate market
For anyone financing a purchase, rates determine the monthly payment more than any headline about market share. The Freddie Mac weekly survey, published at freddiemac.com/pmms each Thursday, is the standard benchmark, and lenders quote individual rates that can differ from it based on credit, down payment and points. Lining up a pre-approval before touring homes lets a buyer move quickly and understand a realistic price range, which helps when competing with the cash share that remains.
Reading material can also help a first-time buyer understand the process before any paperwork begins. Two widely available guides, each reviewed well by readers, cover the steps from saving for a down payment through closing:
- Nolo’s Essential Guide to Buying Your First Home: a plain-language walkthrough of financing, offers, inspections and closing. See it on Amazon (affiliate link)
- Home Buying Kit For Dummies: a step-by-step primer with checklists for each stage of the purchase. See it on Amazon (affiliate link)
As an Amazon Associate I earn from qualifying purchases. A commission may be earned if you buy through this link, at no extra cost to you.
Rate trends are covered in the separate report on the September Fed minutes, and the national sales picture appears in the existing-home sales summary.
This article reports published figures for general information. It is not financial, legal or lending advice, and every number reflects the date of its source, so confirm current figures before acting on them.
