Builders are ‘a bit desperate’ to move Florida inventory, says housing market analyst

With higher mortgage rates and buyers holding off, many homebuilders across Florida are doing what they can to move new construction homes—offering price cuts, rate buy-downs, and even closing cost credits. It’s a sign that the market is shifting, and if you're thinking about buying a home, now might be the right time to jump in.

At DeSanctis Homes, we know buying a house is a big deal. So let’s walk you through what’s happening with new construction home prices, what to expect this year, and how you can make the most of today’s market.

Will New Construction Prices Drop?

Yes—new construction home prices have already started to drop, and there may be more small drops ahead.

According to the U.S. Census Bureau, the median price for newly built homes in August 2024 was $420,600, which is:

• Down 4.6% from the year before

• Down 2.1% from just the month before

Why? Builders are responding to affordability concerns by:

• Offering incentives like mortgage rate buy-downs

• Reducing prices

• Building smaller, more affordable floorplans for first-time buyers

Homebuilders like Lennar have reported an average price drop of 6%, and more homes under $300K are entering the market.

So while we’re not seeing a huge crash, there’s definitely room for buyers to find good deals on new homes—especially if you're flexible and act fast.

Why Buy a New Construction Home?

Even with the market cooling a bit, new construction homes still offer a lot of value:

• Move-in ready with no major repairs

• Energy-efficient features that save money over time

• Builder warranties that give you peace of mind

• Custom options to make it truly your own

• Built to current building codes

At DeSanctis Homes, we design every home with modern families in mind—built strong, built smart, and built around your lifestyle.

When Buying a New Construction Home

Here are a few actionable tips if you’re considering buying new construction:

1. Ask about incentives. Builders may be offering rate buy-downs, closing cost help, or free upgrades.

2. Compare builder reputation. Look for reviews and past work to make sure you’re building from a trusted name (like us!).

3. Get pre-approved. This gives you a clear budget and makes the process smoother.

4. Don’t wait for a huge price drop. Small price cuts are likely, but big ones probably aren’t coming anytime soon.

Are House Prices Going Down?

It depends on the type of home:

• New construction prices are trending down slightly as builders push incentives.

• Existing home prices have actually gone up, with a 3.1% year-over-year increase in August 2024.

So if you’re hoping to score a better deal, new homes may offer more flexibility right now.

When Will House Prices Go Down?

Experts say don’t expect major drops in 2025. A few things need to happen first:

The Interest Rate Waiting Game

Even though the Federal Reserve has started cutting rates, mortgage rates have stayed in the upper 6% range. Until they drop more significantly, buyers may stay on the sidelines—and sellers will too.

Lower rates would help:

• Make mortgages more affordable

• Encourage sellers to list

• Boost buyer confidence

Amping Up Supply

We also need more homes on the market. Builders are being cautious, and many current homeowners don’t want to give up their low-rate mortgages.

Until supply picks up, prices are likely to stay steady, especially in high-demand states like Florida.

When Will Housing Prices Drop? FAQs

Will U.S. housing prices ever drop?

Yes, but it usually happens when supply exceeds demand. Right now, supply is still low—especially for affordable homes. Some areas may see slight declines, but a major drop isn’t likely without big economic changes.

Is it smart to buy a house right now?

If you’re financially ready, yes. You can:

• Lock in a price before they rise again

• Build equity instead of paying rent

• Refinance later when rates go down

Should you buy a house during a recession?

Sometimes, yes. Recessions often lead to lower prices and less competition. Just make sure your income is stable and you’re buying for the long term.

When will the housing market crash again?

No one knows for sure. But most experts agree we’re not in a bubble like 2008. Lending standards are tighter, and demand is still strong—especially in Florida.

FAQs About DeSanctis Homes

Who is DeSanctis Homes?

We’re a Florida-based custom home builder known for building high-quality, energy-efficient homes designed for the way real families live.

Where does DeSanctis Homes build?

We build in several communities across Florida, including Naples, Bonita Springs, Estero, Fort Myers, Sanibel, and Fort Myers Beach, with a focus on comfort, value, and long-lasting craftsmanship.

What makes DeSanctis Homes different?

We care deeply about:

• Clear communication

• Flexible designs

• Exceptional service

  
  

  From your first tour to the day you move in, we’re with you every step of the way.

Ready to Start Your Home Journey?

New construction home prices are getting more competitive, and it might be the perfect time to buy before demand heats back up.

📞 Contact DeSanctis Homes today if you would like more information on designing and building your custom home.

Let’s build your future, together.