75 PERCENT OF BUILDERS OFFERED INCENTIVES AS BUYERS JUMPED BACK IN POST-ELECTION

Pending Sales Index at the highest point in two years 

NEWPORT BEACH, Calif., Dec. 20, 2024 /PRNewswire/ -- The New Home Market Update showed that 10% of builders reported that consumers were re-entering the market following the presidential election. The November 2024 report was released by the experts at Zonda, the housing industry's foremost advisors.

Presidential elections historically don't have a dramatic or long-lasting impact on the housing market, but this year was different. The combination of the election, anticipated future rate cuts, mortgage rate volatility, and housing affordability challenges resulted in more consumers stepping to the sidelines than usual. Once the election passed, consumers began to reengage.

In addition, builders said things like:

• "There was a slower start to the month, but sales picked up after the election"
• "The month started slow, but things picked up mid-month"
• "Sales have increased since the election from being down in recent months"

The survey results aligned with the sales data tracked in our Zonda database. New home sales hit their highest level in seven months, totaling 740,636 on a seasonally adjusted annualized rate. November sales activity was 15.7% higher than last year and 17.0% above 2019 levels.

"There's no denying that incentives helped drive new home sales in November, especially for larger builders," said Ali Wolf, chief economist at Zonda. "Our data captured that 75% of all new home projects were offering some kind of incentive on quick move-in supply. The important difference seen in November, though, was a lift in consumer confidence. The election was over – it was time to move on."

Zonda's New Home Pending Sales Index (PSI): +17.3% YOY
Created to help account for fluctuations in supply by combining both total sales volume with the average sales rate per month per community, the November PSI came in at 149.9, representing a 17.3% rise from the same month last year. The index is currently 13.9% below cycle highs. On a month-over-month basis, seasonally adjusted new home sales increased 5.3%. 

6% growth in community count YOY
There are currently 15,330 actively selling communities tracked by Zonda, up 6.0% from last year. On a month-over-month basis, the national figure grew 0.2%. Total community count is 20.0% below the same month in 2019. Zonda defines a community as anywhere where five or more units are for sale.

For the full report, including data and analysis, click here. 

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About Zonda
Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing.

SOURCE Zonda