The new-home market remained challenged in September, with elevated mortgage rates and broader economic uncertainty weighing on the sector.
September sales decreased 4.6% on a year-over-year basis to 690,215 homes, according to Zonda’s latest New Home Market Update, as markets continued to underperform despite widespread price cuts. Nearly 40% of builders reported cutting prices in September, up from 30% in August.
Zonda’s September builder sentiment survey reinforced the underlying data, with 84% of builders reporting slower-than-expected demand, including 60% of respondents who said the slowdown was causing concern.
Mortgage rates surpassed 7% late in September, adding another hurdle for prospective buyers. Many builders are already offering rate buydown incentives, though further upward movement in rates means builders are having to balance sales with additional margin pressure. In September, 63% of new-home communities offered incentives on to-be-built homes and 82% on quick move-in supply.
Even if the numbers work for buyers, though, widespread economic uncertainty and inflation concerns may deter consumers from making the significant financial commitment of purchasing a home.
“The silver lining we’re seeing in the market today is at the high,” says Sarah Bonnarens, director of economic research for Zonda and NewHomeSource. “Prices in the entry-level and move-up/move-down segments declined in September, but rose in the high-end market. That doesn’t mean high-end sales are easy. Rather, it reflects that buyers with greater wealth are better positioned to navigate today’s challenging market.”
Zonda’s New Home Pending Sales Index (PSI), created to account for fluctuations in supply by combining sales volume with the average sales rate per community, declined 6.0% to 132.0 in September. Denver, Washington, D.C., and Las Vegas performed the worst on a year-over-year basis while Baltimore, New York, and Tampa performed the best relative to September 2025.
National home prices for high-end homes increased 2.0% in September to $946,207 while prices for entry-level and move-up fell 2.6% to $316,246 and 0.8% and $513,294, respectively.
To provide further context sales, the Zonda Market Ranking (ZMR) accounts for seasonally adjusted sales pace and volume and is taken as a percentage relative to a baseline market average. The national ZMR index indicated an average market with a reading of 95.8. Among Zonda’s top 55 major markets, 33% of markets were average and 53% were underperforming.
National quick move-ins (QMIs) totaled 38,214, up 3.5% compared to last year. Builders have taken a more measured approach to spec construction over the past 18 months to avoid adding excess inventory. Total QMIs are 66.2% above 2019 levels.
On a metro basis, 52% of Zonda’s select markets increased QMI count on a year-over-year basis. Philadelphia (+46.8%), San Francisco (+40.9%), and Cincinnati (+35.0%) increased QMI count the most on a year-over-year basis.
