Builders’ incentives prove successful, new home sales rise
New U.S. home sales increased in March after a slow start to the year. A main reason for the boost is the incentives offered by builders, according to Odeta Kushi, deputy chief economist at First American. Builders continued to adjust prices in March to attract homebuyers; a strategy that paid off. New single-family home sales were up 3.3% compared to a year ago and up 7.4% compared to February 2026.
The median price for new homes sold in March was $387,400, down 6.2% compared to a year ago and down 5.3% from February.
“Builders are adapting to the market — reducing prices, offering incentives and shifting to smaller homes — to meet buyers limited by affordability constraints,” said Kushi. “The housing market is showing some spring bounce, proving that demand is there, but only at the right price. Yet, that demand remains fragile and highly sensitive to affordability and economic uncertainty.”
