New home sales remained stable in September as builders leaned on incentives, strategic pricing, and increased inventory to navigate an uncertain economic backdrop, according to the latest Zonda New Home Market Update.
Zonda, which tracks approximately 85% of the U.S. production home market, reported that 716,406 new homes were sold in September on a seasonally adjusted annualized basis. The figure marked a 3.1% month-over-month gain but was essentially flat compared with the same time last year. On a non-seasonally adjusted basis, 57,263 homes were sold, up 0.6% year over year and 8.6% higher than in September 2019.
The report noted that builders are showing increasing adaptability in the face of mixed economic signals and persistent affordability pressures. Through a combination of incentives, targeted price adjustments, and diverse product offerings, many firms are maintaining steady buyer interest.
Mortgage rates, which averaged below 6.5% in September—down from over 7% earlier in the year—also helped support the market. Even with this relief, Zonda’s Market Ranking continued to classify overall conditions as “average.”
“We asked builders about the impact of the recent interest rate shift on their business in September,” said Ali Wolf, chief economist for Zonda and NewHomeSource. “Most reported that they hadn’t noticed much of a difference, describing the market as slow and noting that consumers still seem spooked by broader macro conditions. All of this is a good reminder that for consumers to make the largest purchase of their lives, they need a reason to move, adequate affordability, and confidence in where the market is headed.”
Wolf noted that new home demand continues to depend heavily on builder incentives and consumer confidence, particularly as affordability remains a top concern in many markets.
Overall, the September data underscores a housing market finding balance through creative builder strategies and gradual shifts in mortgage rates, even as buyers remain cautious.
