New-Home Sales Rise in April

As inventory grows and builders continue to cut prices to incentivize buyers, sales of new-construction homes are growing. In April, new-home sales rose by 10.9% on a month-over-month basis and by 3.3% on a year-over-year basis, according recent data analyzed by real estate marketing platform Zillow. At the same time, the median new-home price in April was $407,200, a 2% decline from the prior year. Additionally, there were 504,000 new homes for sale at the end of April, representing 8.1 months of supply. While this was a drop from the 9.1 months of supply in March 2025, it was more than April 2024’s 7.7 months of supply.

Why it matters: With the pool of inventory refilling closer to typical levels, more builders are cutting their prices, just as existing home sellers are. Despite economic jitters, lower mortgage rates combined with strategic price cuts and incentives from builders’ are helping more potential home buyers get home.

According to the National Association of Home Builders, more builders cut their prices in April — 29% of builders — compared to 22% this time last year. However, the average price reduction in April remained at just 5%, lower than the 6% seen in April 2024. The share of builders offering sales incentives has increased somewhat. Nearly 61% of builders provided sales incentives of all forms in April, compared to 57% a year ago.