Home price growth has slowed
National home prices increased year-over-year across entry-level, move-up, and high-end homes. Prices rose 9.6% for entry-level to $337,282, 8.9% for move-up to $526,445, and 7.7% for high-end homes to $902,905.
Supplementing our data with a monthly survey Zonda conducts, there were roughly 43% of homebuilders across the country that reported lowering prices month-over-month in December.
The table below shows the top three markets for year-over-year home price change in each tier.
The large increase in New York is reflective of mix shift as some communities have sold out and some have opened compared to last year.
Incentives are increasingly common in today’s housing market given the slower sales. 57.2% of active projects are offering to-be-built incentives, up from last month. The average incentive dollar amount is $13,336 or 3.9% of the list price.
Community count yet to turn a corner
There are currently 13,463 actively selling communities tracked by Zonda, down 7.2% from last year. On a month-over-month basis, the national figure slipped 2.1%. Total community count is 29.6% below the same month in 2019. Zonda defines a community as anywhere where 5 or more units are for sale.
- Phoenix (+10.4%), San Antonio (+9.4%), and Las Vegas (+9.2%) grew community count the most year-over-year.
- Community count fell the most in New York (-22.4%), Baltimore (-21.6%), and Atlanta (-20.8%) relative to last year.
- 8% of our select markets rose month-over-month while 92% fell.
National quick move-ins (QMIs) totaled 31,509, up 173.0% compared to last year but 7.5% lower month-over-month. The month-over-month drop in QMIs is reflective of builders offering price cuts and incentives to help move the inventory. Total QMIs are 47.9% above 2019 levels. QMIs are homes that can likely be occupied within 90 days.
- On a metro basis, all of Zonda’s select markets increased QMI count year-over-year.
- The markets posting the biggest gains year-over-year were Tampa, Phoenix, and Cincinnati.
- Jacksonville, Phoenix, and Las Vegas have seen the most growth in QMIs compared to the same time in 2019, up 196.7%, 184.1%, and 167.1%, respectively.