First-Time Homebuyers: Facing Historic Challenges
National Landscape
First-time buyers have plunged to just about 21% of the market - the lowest share on record. The typical first-time buyer is now around age 40 (versus late 20s decades ago) and faces daunting affordability hurdles. Mortgage rates hovering around mid-6% combined with high home prices mean that saving a down payment takes much longer than in previous generations.
The report notes first-time buyers usually managed about a 10% down payment in 2025, the highest on record in recent decades. Overall, housing inventory shortages are cited as a key barrier keeping many first-time buyers out of the market.
Pierce County Reality
Affordability is similarly strained in Pierce County. The median home price was roughly $579,000 in mid-2025, about 5% above the prior year. By comparison, local median household income is around $96,600, so purchasing a starter home requires saving a large down payment or relying on assistance programs.
Inventory has risen recently with active listings significantly higher year-over-year, which offers more options. Still, local first-timers often take longer to save for 10-20% down payments in this market.
South King County (King County South of Seattle)
The South King submarket is pricier. Recent NWMLS data put the median sale price near $685,000 (June 2025) for Southeast King County, and King County overall exceeded $913,000. Median income in King County is higher at about $122,000, but so are prices.
First-time buyers in South King face similar or greater challenges than statewide: higher earnings are mostly offset by higher home costs. In summary, national affordability issues hold locally - few buyers can break in, first-timers delay purchases, and many rely on savings, gift funds, or assistance to cover larger (10-20%) down payments.
Repeat (Move-Up) Homebuyers: Flexing Financial Power
National Trends
Repeat buyers dominate at about 79% of sales, and they are flexing substantial financial power. Nationally, repeat buyers averaged a 23% median down payment in 2025 (a record high) and roughly one-third paid all cash.
Long-term home price gains have greatly increased seller equity: the typical U.S. seller had owned their home 11 years (also a record) and amassed roughly $140,900 in wealth. In other words, most repeat buyers roll sale proceeds into their next purchase, with over half using sale proceeds to fund the down payment.
Pierce County Market
Local sales reflect this equity-driven buying. As Pierce home values have trended upward, many homeowners have built up sizable equity cushions. NWMLS data show pendings and inventory rising even as closings are modestly down, indicating strong competition among active buyers.
Repeat buyers here typically buy larger or more expensive homes (the "move-up" purchase) using funds from their prior sale. Rising local prices mean a move-up purchase often involves a higher loan or cash-out. In practical terms, Pierce move-up buyers today often own small starter homes (now worth 30-40% more) and are leveraging that equity into a pricier home or cashing out to invest.
South King County Dynamics
In King County, a similar story plays out. Local move-up buyers can tap very large equity given years of price growth (the Seattle area has seen double-digit gains in recent years). King County had over 6,300 active listings in June 2025, and its median price of approximately $913,000 means selling even a modest home often frees up substantial cash.
Buyers in South King are frequently selling longtime suburban homes to buy bigger or newer properties - and many are able to make higher down payments (reflected by 23% medians nationally) or pay in cash. NWMLS reports show repeat buyers statewide often have well over 20% to 25% down payments. In summary, repeat/local buyers today generally face a supply-constrained market but come in with stronger financial footing, often affording larger homes than the first-time segment.
Downsizing/Retirement Sellers: The Baby Boomer Wave
National Demographics
A historic surge of older sellers is reshaping the market. Nationally the typical home seller is now 64 years old, a record high. Many sellers are baby boomers looking to downsize or relocate; indeed NAR has noted that the largest share of buyers and sellers are Baby Boomers.
The data show sellers are staying in their homes longer (11 years on average) before moving, so many are empty nesters or retirees trading bigger suburban homes for smaller residences or retirement communities. Given their long ownership, these sellers often expect top dollar and may invest proceeds in retirement or new homes.
Pierce County Demographics
Pierce's own demographics are aging. Local reports highlight strong growth in the 65+ population (about 61% growth for 65+ residents), raising the county's median age to roughly 37.5. This suggests many home sellers are older, perhaps trading larger homes for one-level living or sunnier climates.
From a market perspective, inventory of family-sized homes has increased with active listings jumping nearly 28% year-over-year in June 2025, giving downsizers more choice. Sellers need to market carefully, as prices here remain firm (median approximately $579,000). Overall, affluent retiree sellers in Pierce benefit from their high home equity, but they must also contend with shifting buyer preferences (e.g., some downsizers seek urban or low-maintenance options).
South King County Patterns
King County also skews older among sellers. While South King is somewhat younger than central Seattle, many residents are long-time owners. Local home sellers in their 60s and 70s often downsize to smaller homes or condominiums.
King County's strong price appreciation means these sellers typically have high home equity. For example, median prices in many South King suburbs exceed $600-700,000, so a downsizing seller often takes away substantial proceeds. However, Seattle-area markets have more first-time and move-up buyers in suburban corridors, so the demand for downsizer-oriented homes (e.g., smaller condos or ranch houses) can be patchy. Sellers who price competitively and appeal to niche buyers (e.g., retirees or singles) tend to see better results.
Relocating Buyers and Sellers: Migration Patterns Matter
National Migration Trends
Migration patterns are a major factor nationally. Surveys show many moves are driven by family or value. For example, about 23% of recent buyers chose their location to be closer to family/friends, and 12% to get more house for the money.
In 2024 roughly 36% of moving buyers relocated to a different state, while others moved within their state (nearly equal shares moved within the same city, to a different city, or to a different area within the state). These trends reflect people leaving expensive areas for affordability or moving closer to jobs/family.
Pierce County Migration
Locally, Pierce has actually seen net outflow in recent years. A regional report notes that domestic migration declined, with more people moving away from Pierce than moving in (2010-2021). Many Pierce residents commute to Seattle or other job centers (about 1 in 4 work outside the county) and some eventually relocate to be closer to employment.
Conversely, Pierce does draw some buyers from Seattle or California seeking lower prices and more space. Overall, relocation patterns here tend to be two-way: families move in for affordability and lifestyle, while others move out for higher-paying jobs or retirement. Buyers relocating to Pierce often cite affordability or larger homes, aligning with national motivations, and sellers often cite jobs or family moves as reasons for selling.
South King County Appeal
The Puget Sound region remains a magnet. Many out-of-state and domestic buyers continue moving into King County suburbs (including South King) for tech jobs, schools, or family. Seattle-area economics (job hubs like Bellevue and SeaTac) mean more people move in here compared to Pierce.
That said, moves within the area are common: some Seattle homeowners sell to relocate to more affordable South King neighborhoods. Locally, motivations mirror the national picture: closeness to family, more home for money, or better taxes/crime rates all influence moves into or within South King. Agents report that suburban South King buyers often move from within King or Snohomish counties to trade up or change lifestyle, while some sellers relocate across the state for work.
Overall Outlook: A Stratified Market
The 2025 NAR profile shows a highly stratified market: entry-level buyers struggle with supply and high costs, while cash-rich and repeat buyers thrive. Our local data reflect this: both Pierce and South King have seen rising inventory (more choice for buyers) and steady price growth.
For Pierce, increased active listings (up approximately 28%) have begun balancing demand, aiding buyers but still leaning slightly toward sellers. South King (King County) is pricier but similarly has more supply than last year, so buyers with cash or large down payments gain leverage. Sellers in both areas still sell quickly at market price (median months of supply only about 2-3 months).
In summary, buyers and sellers in Pierce and South King face many of the same forces seen nationally - affordability pressures, low first-time participation, and an aging seller base - but with local twists (e.g., Washington's high prices and migration patterns). Knowledgeable agents can help all parties navigate these trends by leveraging data: pricing competitively, exploring assistance programs, and aligning moves with personal goals (whether entry, trade-up, downsize or relocate).
