More Home Builders Are Cutting Prices

The inventory of new homes for sale has reached levels not seen since 2007, and that could be great news for prospective homebuyers. A surplus of homes typically means better home purchase opportunities and potential deals for today’s buyers.

According to a recent report from the National Association of Home Builders (NAHB), many homebuyers are already benefiting. In July, 38 percent of builders reported cutting prices on new homes, with an average home price reduction of 5 percent. That’s a notable jump from April, when only 29 percent of builders were offering discounts.

Robert Dietz, NAHB’s chief economist, explained that the price cuts are a response to a slowdown in the new-home market. “Single-family housing starts will post a decline in 2025 due to ongoing housing affordability challenges,” Dietz said. “Single-family permits are down 6 percent on a year-to-date basis, and buyer traffic is at a more than two-year low.”

While the slowdown may signal concern for some, it could present a big opportunity for first-time homebuyers and others looking to make a home purchase this summer. Builders are increasingly offering incentives and discounts to attract hopeful buyers and home shoppers.