Homebuyers Navigate Market Challenges with Optimism

NEW YORK — Despite high prices and complex mortgage options, homebuyers are finding creative ways to navigate the housing market. As home prices have steadily risen since mid-2020, potential homeowners face significant challenges in achieving their dreams.

The median price of a home sold at the end of 2024 was $419,200, according to Federal Reserve Economic Data (FRED) compiled by the Federal Reserve Bank of St. Louis. To understand how buyers are coping, SoFi bank surveyed 500 U.S. adults planning to buy a home. About 55% of these respondents were first-time buyers.

Finding affordable homes and securing financing are the biggest concerns for buyers. Over 40% reported that high home prices were their greatest challenge, while more than a third expressed confusion over mortgage options. The availability of active listings also remains a significant hurdle, with only about 829,000 homes available at the beginning of 2025, down from over 1 million in December 2019.

Many respondents, 42%, indicated that finding a home in their price range was their main obstacle. Additionally, 14% said they lacked sufficient savings for a down payment. Contrary to common belief, the median down payment was 15% in late 2024, with first-time buyers typically putting down only 8%.

SoFi’s survey revealed that nearly half of those struggling with down payments had not explored available assistance programs. An equal number of buyers cited credit score issues and difficulties securing a mortgage as major challenges. Technology has assisted many, with 65% utilizing online property listing platforms like Zillow, while 39% have benefited from virtual home tours.

Despite the challenges, 81% of respondents remained optimistic about buying a home within their budgets in the next six months. Buyers’ budgets varied, with 29% planning to spend between $250,000 and $499,999, and 15% aiming for homes under $100,000.

Potential homeowners are adopting various strategies to save for their purchases. Nearly all buyers have adjusted their spending habits, with 49% cutting nonessential expenses and 41% finding side hustles for extra income. Concerns about ongoing homeownership costs, like maintenance, property taxes, and mortgage payments, also persist among buyers.

As they continue to search for houses, buyers are also focused on selecting the right mortgage lender. Interest rates remain the most significant consideration for 64% of survey participants when choosing lenders. In fact, the percentage of buyers paying all-cash for homes has reached an all-time high, underscoring the financial pressures in the current market.

With rising home prices and interest rates, homebuyers are committed to finding solutions. The survey indicates that many prospective homeowners are prepared to navigate this challenging landscape with creativity and determination.