New home sales blow past expectations

Heading into Summer

We welcome you all back from the Memorial Day Holiday weekend. 

As we head into the summer, we’ll get you up to speed on all the latest trends in the housing market, from the surge in new home sales to the rise in purchase cancellations.

We’ll also look at how buyers are changing, and what that means for both agents and investors. 

Plus, we conclude our two-part series on how to create an effective listing plan.

So let’s get into today’s Blueprint!

- James and David

New home sales blew past expectations

In April, single-family home sales surged to a seasonally adjusted annual rate (SAAR) of 743,000, up 10.9% from March’s revised total of 670,000 and 3.3% higher than April 2024, according to the new U.S. Census Bureau data reported by Zillow and Realtor.com. Here are the key takeaways from April:

• Sales increased in every region except the Northeast, with the South accounting for two-thirds of all new home sales

• The average price cut was 5%, down 1.0% YoY

• The median sale price was $407,200, down 2.0% YoY

• Builders are getting more aggressive with their pricing. 29% of builders cut prices (up 7.0% YoY) and 61% of builders offered sales incentives (up 4% YoY).

• 504,000 new homes were for sale at the end of April, a supply of 8.1 months. Inventory is up from 7.7 months a year ago but down from 9.1 in March.

• More homes were listed pre-construction (119,000) than completed (115,000). Nearly 53% of new homes are under construction, while 23.9% haven’t begun construction and 23.1% are fully complete.

Our take

New home sales continue to defy expectations, given the affordability headwinds facing buyers. Unlike the existing home market – where the luxury segment is outperforming other price tiers, and many of the slowest markets are in the South – new construction is seeing steady growth in lower-priced inventory, especially across Southern states. Builders are doing what many resale homeowners won’t: they’re cutting prices and offering incentives. That’s creating opportunities for buyers who feel shut out of the resale market and shifting pricing power toward new construction in a meaningful way.

How changing lifestyles are reshaping the housing market

Americans are hitting traditional life milestones later than previous generations: staying in school longer, marrying later, and having fewer children, often later in life. According to ResiClub, these “lifestyle delays” are transforming the U.S. housing market in several ways:

• The median age of first-time homebuyers has jumped to 38 in 2024, up from 28 in 1991. Getting married or starting a family, once key triggers for buying a home, are now happening much later.

• When people do form households, those households are smaller. Birth rates have declined, and more adults are living alone or with fewer dependents.

• One- and two-person households now make up a growing share of the market, while larger households (three or more people) are on the decline.

Our take

Today’s buyers are older, more likely to be single or childless, and looking for homes that reflect a different stage of life – a shift that presents both challenges and opportunities. Affluent 30- and 40-somethings now make up a growing share of first-time buyers, and understanding their preferences today can lead to lasting client relationships tomorrow. For investors, there’s also opportunity: many late 20- and 30-somethings who would’ve owned homes in past generations are still renting, fueling demand for build-to-rent communities that offer the privacy and space of single-family homes without the long-term commitment. Agents and investors who understand these delayed-but-deliberate life paths will be best positioned to serve the next wave of clients.

Markets with the highest purchase cancellation rates

In April, approximately 56,000 U.S. home-purchase agreements were canceled, representing 14.3% of all homes that went under contract that month, according to Redfin. That’s up from 13.5% a year earlier and marks the highest April cancellation rate on record, excluding April 2020, when the pandemic brought the housing market to a standstill.

Here are the top markets with the highest cancellation rates:

1. Atlanta, GA: 20%

2. Orlando, FL: 19.4%

3. Tampla, FL: 19.1%

4. Riverside, CA: 19.1%

5. Miami, FL (tie): 18.9%

6. Fort Lauderdale, FL (tie): 18.9%

7. Fort Worth, TX: 18.7%

8. Las Vegas, NV: 18.6%

9. Jacksonville, FL: 18.4%

10. San Antonio, TX: 18.2%

Our take

Elevated cancellation rates are a gift to buyer agents IF you’re quick to move. When a deal falls through, don’t wait for the listing to hit the market again. If your client was outbid, write an offer immediately. Disappointed sellers are often more open to re-evaluating offers they previously passed over, especially if they’re eager to move on. A home that falls out of contract can carry a stigma, even if there’s nothing wrong with it. This gives your client negotiating power regarding price flexibility, seller concessions, and other favorable terms. Stay in close contact with listing agents and track deals in real time. Your best leverage is good timing.

Schematics

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Foundation Plans

Advice from James and David to win the day

Today, we’re wrapping up our two-part series on how to create an effective real estate listing marketing plan for the rest of 2025. Agents face real headwinds — elevated mortgage rates, longer days on market, and buyer hesitancy — all of which can make it harder to secure top dollar for a listing. That’s why a smart, targeted approach matters more than ever. You can catch up on Part One with Tips #1-3. Now let’s dive into #4-6.

4. Identify and target your ideal buyers

When marketing a listing, it’s vital to identify and appeal to your ideal buyer or target audience. Understanding your property’s unique features, neighborhood appeal, and target demographics allows agents to craft marketing materials that resonate with the right audience. Use advanced demographic insights and market data to locate potential buyers based on lifestyle preferences, income, and buying behaviors. Once you pinpoint these buyers, use digital and print campaigns tailored to reach them directly, utilizing social media ads, targeted email campaigns, and specialized listings on high-traffic real estate platforms. Engage prospects through high-quality photos, virtual tours, and videos, highlighting features that appeal specifically to the ideal buyer, from high-end finishes to proximity to top-rated schools or vibrant shopping districts.

5. Refresh and relaunch stale listings

If a listing remains on the market longer than anticipated, it may deter potential buyers. To counter this problem, we recommend implementing a strategic refresh and relaunch plan. This includes assessing and updating the listing description, adding new highlights, or rephrasing details to keep the property appealing. Adjustments to the staging and photography can give it a fresh look, appealing to buyers who may have initially overlooked it. Additionally, we recommend leveraging a re-targeted marketing push to re-engage potential buyers and tap into a new wave of interest, ensuring the listing regains visibility and excitement.

6. Create an exclusive experience for serious buyers

To further enhance appeal and secure a high sale price, think about using premium in-person marketing that creates an exclusive experience for serious buyers. From private showings with personalized tours to select invitation-only open houses, cater to buyers looking for a premium personalized special experience. Customized property brochures, high-quality staging, and personalized walkthroughs create an environment where potential buyers can envision their lifestyle within the property. If it’s within your budget, you might want to consider using neighborhood influencers to create buzz around your listing, positioning it as a unique opportunity.

There’s no one-size-fits-all approach to listing strategy, but these six tips are a solid foundation. We’ll be sharing more throughout the year. In the meantime, check out these additional resources to take your marketing to the next level: here and here.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“Don't be pushed around by the fears in your mind. Be led by the dreams in your heart.” – Roy T. Bennett

We love this quote because it speaks to why so many of us got into real estate in the first place. We won’t pretend that being an agent is easy. Building a successful career in this business takes grit, consistency, and a long view. But real estate has been the vehicle that helped us reach our financial goals, and we believe it can do the same for you. So keep showing up, keep learning, and keep chasing the dream.

- James and David