Developers’ home sales plummeted by 9.1% in April 2025, reaching only 663 units sold, as the housing market displayed mixed signals despite entering the traditional summer selling season. This decline occurred against a backdrop of increasing inventory across all major U.S. regions, with the West experiencing the most substantial growth at 41.7%, followed by the South at 33.3%, the Midwest at 18.7%, and the Northeast showing the smallest increase at 12.4%.
The late-April uptick in mortgage rates, which nearly returned to levels from a year prior, likely contributed to the sales downturn by discouraging potential buyers who had been waiting for further rate decreases. After peaking at 7.04% in early 2025, mortgage rates had fallen to approximately 6.6% before reversing course, creating market uncertainty influenced by government trade and economic policy fluctuations.
Despite the drop in developers’ sales, newly pending sales increased 3.4% from March to April 2025, though they remained down 3.2% year-over-year. This year-over-year decline represented an improvement from March’s 5.2% drop, suggesting some stabilization in market conditions. The market has seen fierce competition among buyers in the Northeast region, while the South has experienced more relaxed buyer activity.
Modest month-over-month gains in pending sales signal potential market stabilization despite persistent year-over-year declines.
Concurrently, new listings rose 9.8% month-over-month and 9.2% year-over-year, slightly below March’s 10.2% annual gain.
The New Jersey market demonstrated resilience amid these national trends, with the median sales price increasing by 4.5% to $410,000 in April 2025, contributing to a year-to-date median price growth of 6.4%. The average sales price in the state, however, remained flat compared to the previous period according to data released on May 1, 2025.
Market analysts note that continued rate volatility could further impact summer performance, potentially causing listing activity to ease in coming months. The required income to afford a median-priced home has risen by almost $47,000 since 2019, creating additional barriers for potential homebuyers. The subdued buyer activity, despite inventory increases, reflects a cautious approach from consumers maneuvering through higher borrowing costs.
This combination of factors creates a complex environment for developers, who must now adapt their strategies to address changing market dynamics and consumer sentiment as the traditional summer selling season progresses.
