By Vincent Salandro | Builder
The persistence of uncertainty in the overall economy has contributed to a disappointing first half of 2025 for the housing market. Policy uncertainty, elevated interest rates, and ongoing affordability challenges remain key constraints, keeping many potential buyers on the sidelines.
“The new home market has not lived up to expectations so far in 2025,” says Ali Wolf, chief economist for Zonda. “There are consumers that want or need to move, but there’s really no urgency to make that decision today.”
In the new-home market, Zonda estimates May sales were down 5.8% year over year on a seasonally adjusted basis and down 5.3% on a non-seasonally adjusted basis. In the resale market, existing home sales declined 0.7% year over year in May.
