The new home market in June showed more signs of sluggishness. While builders continue to add supply and sweeten deals, many buyers remain hesitant, wary of higher costs and economic uncertainty. However, there are advantages to be had for new homebuyers willing to enter the current market, according to Zonda’s New Home Market Update for June 2025.
Why it Matters: For consumers, this “average” market may not be exciting as rock-bottom prices, but it’s a window of opportunity. Builders are making a bigger effort to entice homebuyers, and supply is growing. For buyers who can stomach today’s mortgage rates, the market could offer a better-than-expected entry point into new construction.
“We’re not in a crash, but we’re definitely not in a boom,” said Ali Wolf, chief economist at Zonda and NewHomeSource. “The market is average, and average feels slow when you’re used to the extremes.” Where things stand: Zonda’s new home sales metric counts the number of new home contract sales each month nationwide and accounts for cancellations and seasonality.
• New home sales:
689,834 annualized rates in June 2025
Up 1.5% from May 2025
Down 2.2% from 2024
Non-seasonally adjusted:
58,848 homes sold
Down 1.5% year-over-year
Up 5.3% compared to June 2019
Where Things Stand
Zonda’s New Home Pending Sales Index (PSI) was created to help account for fluctuations in supply by combining both total sales volume with the average sales rate per month per community.
Here are the cities performing the best and the worst in June 2025, according to PSI:
Best year-over-year performing markets:
Minneapolis (+17.1%)
Jacksonville (+15.5%)
Cincinnati (+14.0%)
Worst year-over-year markets:
San Francisco (-29.6%)
Las Vegas (-21.3%)
Riverside/San Bernardino (-16.8%)
What it Means for Homebuyers
More inventory: The best performing markets will have slightly more homes available, and benefits such as lower insurance costs. However, prices may be rising in these areas. For the worst performing markets, you’ll have fewer options and higher prices, but builders may be willing to work on obtaining more incentives for you.
Quick move-ins: One of the bright spots is the rise in quick move-in (QMI) homes. These are homes that are either finished or nearly complete and ready for occupancy within 90 days. QMIs were up 18.5% year-over-year in June 2025, a trend driven in part by affordability challenges in the resale market.
But more options don’t mean fast-moving inventory. Builders are being cautious with starts, while trying to move existing stock through promotions and price adjustments. “The housing market creates jobs during the construction of a new home, at the point of sale, and following move-in,” said Wolf. “The longer this stagnant sales environment persists, the wider the potential economic impact.”
Incentives are common:
57% of new home communities offered incentives on to-be-built homes in June 2025
75% of communities offered incentives on QMIs
39% of builders lowered prices
59% held prices flat
Only 2% raised prices
National prices reflect the pressure on builders. Entry-level homes are down 1.7% year-over-year, now averaging $326,964. Move-up homes dipped 1.0% to $518,725, while high-end prices held steady at $915,696. Buyers should evaluate the current interest rate and how it might align with their budget. For those who can afford it, it may be time to pull the trigger and make that purchase.
Meanwhile, the number of actively selling communities tracked by Zonda rose for the seventh consecutive month, up 8.9% from last year. That means buyers may have more choices, and potentially more leverage.
The bottom line: For new homebuyers, it’s time to crunch the numbers and put in the legwork. If you can swing the higher interest rates, get out there and see what’s available in your area. Compare and contrast the incentives. Find the builder who’s willing to do the most to get you into a new home, because there’s wiggle room to be found.
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