The New Home Market is Stuck in a Rut
Friday, August 1st, 2025
- Zonda's June 2025 New Home Market Update shows the housing market is stuck in a rut. Resale activity remains sluggish, and new home sales are down compared to this time last year.
"The housing market creates jobs during the construction of a new home, at the point of sale, and following move-in," said Ali Wolf, chief economist for Zonda and NewHomeSource. "The longer this stagnant sales environment persists, the wider the potential economic impact, particularly due to an accompanying lower pace of housing starts."
Little change in sales activity
- 689,834 homes sold in June on a seasonally adjusted annualized rate (+1.5% last month, -2.2% last year)
- 58,848 homes sold on a non-seasonally adjusted basis (-1.5% last year and +5.3% same month in 2019)
The Zonda Market Ranking was average with relative stability
The ZMR held at average in June for the sixth consecutive month (107.4). While not a booming market, consumers are showing some positive response to builder incentives and/or price cuts.
- In top 50 markets, 32% overperformed, 32% were average, and 36% underperformed