Builders Are Cutting Prices to Attract More Home Buyers This Fall
- Yvonne Yang
- Oct 22
- 2 min read
Affordability is still a big challenge in today’s housing market — and builders are responding.
According to the latest National Association of Home Builders/Wells Fargo Housing Market Index, 38% of builders cut home prices in October, with an average price drop of 6%.
That’s helping to close the gap between new and existing homes.
Median new-home price: $413,500
Median existing-home price: $422,600 (as of August)
This is unusual — new homes typically cost more, but today’s pricing trends are flipping that script.
Builders Are Getting Creative
To keep buyers interested, 65% of builders are also offering extra perks — things like mortgage rate buydowns, closing cost help, or upgrade packages.
They’re also designing smaller floor plans to make new homes more affordable.
Mortgage Rates Are Helping, Too
There’s more good news on the mortgage front.
The 30-year fixed rate recently dropped to 6.27%, down from around 7% earlier this year, according to Freddie Mac.
“Lower rates are a welcome change for buyers and have even led to more refinance activity,” says Sam Khater, Freddie Mac’s chief economist.
He adds that a mix of rising housing inventory, slower price growth, and lower rates is creating a more balanced market for buyers.
The Market Outlook
Builders are hopeful that these price cuts and incentives will translate to stronger sales through the fall.
Buddy Hughes, NAHB’s chairman, says, “While recent declines in mortgage rates are encouraging, affordability remains a challenge. Many buyers are still waiting for rates to drop further.”
Still, momentum is building.
Realtor.com® recently noted that mid-October offers some of the best buying conditions of the year, with more listings, lower prices, and less competition.
The Pending Home Sales Index from the National Association of REALTORS® showed a 4% annual increase in signings in August, hinting at stronger activity ahead.
Bottom Line
Builders are doing what they can to make homes more attainable — from cutting prices to offering incentives — and lower mortgage rates are helping open the door for more buyers.
If you’ve been waiting for the right time to make a move, this fall could be your window of opportunity.
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