If you’ve been keeping an eye inventory and slower price growth — is creating a more favorable environment for on the housing market, there’s good news this fall. Home builders are rolling back prices and offering new incentives to help more buyers get to the closing table.
According to the National Association of Home Builders/Wells Fargo Housing Market Index,
- 38% of builders reported cutting home prices in October,
- with the average reduction around 6%.
This move is narrowing the price gap between new and existing homes. The median new-home price is now $413,500, compared to $422,600 for existing homes — a rare shift since new homes usually sell for much more.
To attract buyers, 65% of builders are also offering perks like mortgage rate buydowns and upgrade packages. Smaller, more affordable floor plans are also helping reach buyers who’ve felt priced out.
There’s more optimism as mortgage rates continue to dip. Freddie Mac reports that the 30-year fixed rate has dropped to 6.27%, down from around 7% earlier this year. That’s encouraging news for both homebuyers and homeowners considering a refinance.
“While the recent decline in rates is encouraging, affordability still remains a challenge,” says Buddy Hughes, NAHB Chairman. “Most buyers are waiting for rates to move even lower.”
Still, the drop in rates — combined with more housing buyers.
📈 Market Timing Tip:
A recent Realtor.com® study identified mid-October as the best time of year for homebuyers, offering a sweet spot of more listings, lower prices, and less competition.
The Pending Home Sales Index from the National Association of REALTORS® also showed an uptick in late-summer contract signings — up 4% from last year — suggesting stronger activity heading into fall.
💡 What This Means for You
- Buyers: You may see more options, better prices, and rate incentives this fall.
- Sellers: With renewed buyer interest, it’s a great time to price competitively and market smartly.
- Homeowners: If you’ve been thinking of refinancing, lower rates could mean real savings.