New Home Sales Show Consumers Have Reached Their Limits

Builders Continue to Offer Incentives and Price Cuts

NEWPORT BEACH, Calif., May 21, 2025 /PRNewswire/ -- Zonda and NewHomeSource's April 2025 New Home Market Update shows that consumers in many housing markets across the country have reached their limits, both financially and mentally.

• Financially, stubbornly high mortgage rates have contributed to housing affordability holding at the worst level in 30 years.
• Mentally, people are still trying to make sense of the impact of tariffs and are nervous about job security.

"New home sales have been choppy to start the year but remain above 2019 levels," said Ali Wolf, chief economist for Zonda and NewHomeSource. "Today's sale volume levels are fueled by the fact that builders are motivated sellers, though. Builders continue to offer incentives to drive sales, but we're seeing price cuts play a larger role in some areas."

New home sales were flat month-over-month and down 6.9% compared to last year. The Zonda Market Ranking was ranked average for the fourth month in a row.

• Importantly, quick move-in (QMI) inventory (can likely be occupied within 90 days) isn't hitting the alarming levels we saw in 2022, at least not nationally. 
• Across the country, there was an average of 2.3 QMIs per community in April, up 22% from the 1.9 this time last year but down 9.0% from the 2022 peak of 2.5.
• On a metro basis, 84% of Zonda's select markets increased QMI count year-over-year.
• The markets that grew the most year-over-year were Seattle (+113.7%), Charlotte (+72.6%), and Washington, DC (+65.6%).
• Jacksonville, Sacramento, and Phoenix have seen the most growth in QMIs compared to the same time in 2019, up 320.6%, 294.7%, and 205.8%, respectively.

Pricing mixed year-over-year
Prices fell 0.8% for entry-level to $328,540 and 0.2% for move-up to $518,931 but rose 0.4% for high-end homes to $910,304. Zonda's monthly survey also showed that 35% of builders lowered prices in April, 49% held prices flat, and 16% raised prices. In April, 56% of new home communities offered incentives on to-be-built homes and 75% on quick move-in supply.

Community counts were flat MOM
There are currently 16,025 actively selling communities tracked by Zonda, up 7.3% from last year. On a month-over-month basis, the national figure slipped 0.3%. Total community count is 16.9% below the same month in 2019.

• Orlando (+23.5%), Raleigh (+12.4%), and Charlotte (+12.3%) grew community count the most year-over-year.
• Relative to last year, the biggest community count declines were in Washington, DC (-16.3%), Philadelphia (-16.3%), and Las Vegas (-10.9%).

See the full report including data and analysis.

Find the latest in housing, home design, and buyer trends at NewHomeSource.com/news.

Also, visit ZondaHome.com or follow us on LinkedIn for more information. Zonda tracks 85% of the production new home market across the United States.

About Zonda
Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing.

About NewHomeSource (NHS)
NewHomeSource.com is America's #1 source for consumers as they search for new construction communities and homes. NewHomeSource also has the most extensive collection of ratings and reviews for homebuilders nationwide. As the only independent source of reviews from verified homebuyers, TrustBuilder delivers the honest insights you need to make decisions with confidence.

Media Contact: Diane Begin
[email protected] | (224) 836-5615

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