New Home Sales Are Down Year-Over-Year but Classified as Average

Quick move-ins are 89.6% above 2019 levels; many include buyer incentives

NEWPORT BEACH, Calif., March 21, 2025 /PRNewswire/ -- Zonda's February 2025 New Home Market Update report shows clear differences in how the market is doing, depending on who you ask:

• Builder size - Larger builders are faring better than smaller ones
• Geography - Builders in the Midwest are more bullish than those in Florida, for example
• Buyer type - Higher-end buyers are showing more resiliency (for now)

One unifying factor? Incentives, which consumers now expect as part of the purchase process.

• In February, 56% of new home communities offered incentives on to-be-built homes and 74% on quick move-in supply.
• Publicly advertised incentives averaged 4% of local home prices nationally.
• Incentives can address both desirability, via design credits, or affordability, through mortgage rate buydowns or closing cost assistance.

Despite these efforts, the market remains uneven, which contributed to a nearly 12% year-over-year decline in sales. Our Zonda Market Ranking, a measure of sales adjusted for supply and seasonality, held flat at average in February for the second month in a row, after being slightly overperforming throughout 2024.

"There are good days and bad days in today's housing market," said Ali Wolf, chief economist for Zonda and NewHomeSource. "Fluctuations in stock values, uncertainty about the labor market, and low housing affordability have consumers particularly concerned. For some, though, marriage and babies are a more powerful factor."

• New home sales slow down | There were 666,568 new homes sold in February on a seasonally adjusted annualized rate. This was a decline of 1.9% from last month and a drop of 11.6% from a year ago. On a non-seasonally adjusted basis, 57,138 homes were sold, 11.4% lower than last year and 1.6% below the same month in 2019.
• Pricing was flat year-over-year | Home prices were largely flat across all price segments. Prices held steady at the entry-level at $329,229 and rose just 0.7% for both move-up and high-end homes to $520,228 and $912,283, respectively. Our pricing data makes no adjustments for home size or location.
• National quick move-ins are up | Total QMIs (can likely be occupied within 90 days) are 89.6% above 2019 levels and up 17.5% compared to last year, but 8.2% lower month-over-month. Zonda's newly launched QMIs per community report shows there are 2.4 QMIs per community nationally, up 23% from the 1.9 this time last year but down 6.9% from the 2022 peak of 2.5. 

See the full report including data and analysis. Visit NewHomeSource for more on:

• Your Options When You Want a Quick Move-in House
• Understanding Builder Incentives: Are They Worth It?
• A First-Time Buyer's Guide to Builder Incentives

Join Zonda at an upcoming event or webinar:

• Accelerate, Mar 24-25 (Austin)
• Houston Dealmakers, Mar 28 
• Building Products Update, Apr 1 (webinar)
• Q2 Housing Market Forecast. Apr 24 (webinar)
• Builder 100 Leadership Summit, May 5-7 (Dana Point, CA)

Visit ZondaHome.com or follow us on LinkedIn and Facebook for more information.

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.

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

SOURCE NewHomeSource powered by Zonda