Prices stable and incentives available as the housing market enters what could be the calm before a buying surge. NewHomeSource parent company Zonda surveys homebuilders every month to figure out what’s actually happening out there, and the September responses tell an interesting story. Builders say prices aren’t climbing, deals are everywhere, and more homes are coming to the market soon.
Homebuyers need to know these three takeaways from what builders surveyed are reporting. The information gives real clues about where things stand right now and what to expect as we head toward 2025 and 2026. Market sentiment among builders shows stability even though plenty of buyers still seem nervous about jumping in.
Lower mortgage rates dropped in September, getting close to 6% at one point before increasing around 6.3% by the end of the month. That small decrease should have gotten people excited, but builders report it didn’t really move the needle. Buyer traffic stayed about the same, and demand didn’t jump the way anyone expected.
Why aren’t rates making a difference? Builders are offering mortgage rate buydowns that can lower your interest rate by more than a full percentage point in some cases. These discounts represent serious savings, yet hesitant buyers stay on the sidelines. Economic uncertainty and job instability are keeping would-be buyers cautious, regardless of small changes in what they’d pay each month. Pulling people into the market takes more than better financing when everything else feels shaky.
What about tariffs? Turns out they’re not a top concern based on September’s survey. Tariffs have potential to affect material costs and lead to higher home prices eventually, but builders say they haven’t seen significant impacts yet. The total cost of building a home has remained relatively stable, which counts as good news for buyers shopping now. Some builders are actually cutting prices to help find buyers in this soft market.
You should keep a close eye on tariffs though. They could begin to impact construction costs and home prices as 2026 gets closer. What looks like stability today might not last if material costs start rising. For now, the situation favors buyers willing to act.
Here’s what makes the current moment interesting. Housing starts are expected to be flat or marginally higher in 2026, which doesn’t sound exciting until you dig deeper. Single-family starts will finish 2025 lower than 2024, but nearly half of the builders in the Zonda survey plan to increase their housing starts next year. This projected increase is largely due to community count going up.
Community count means communities with five or more homes for sale. This number has increased for nine consecutive months now. Builders expect the trend to continue into 2026, which should mean more options start hitting the market in the next eight to 12 months. If you’re looking in production home markets, you’ll see new inventory appear on the horizon soon, especially where builders’ expansion plans are aggressive.
The bottom line is pretty straightforward. Rates and prices remain steady, incentives are still in play, and supply is about to expand. The landscape favors buyers who understand what’s coming and can make smart moves now. This calm period won’t last forever. Demand will eventually catch up, primarily focused once business conditions improve and people feel more secure about their jobs. New construction markets offer the most available inventory below what you’d pay for existing homes in many cases, making them worth watching as builders adjust their strategies through the coming months.
