When is the best time to buy a new home?

Key takeaways

• A builder's sales cycle can matter as much as the season. Different stages of a community's development can affect home selection, incentives and negotiating opportunities.
• Incentives are often more common than price cuts. Builders frequently use mortgage-rate buydowns, closing cost assistance and upgrades to attract buyers without lowering sale prices.
• Inventory levels can influence bargaining power. Rising inventory and slower sales can create conditions where builders are more willing to negotiate. 

The best time to buy a new-construction home isn't always tied to the season. In many cases, it depends on where a builder is in the development process.Builders often release homes in stages, from pre-sale through final closeout. Each stage can create different opportunities for buyers, whether that's a wider selection of homesites and floor plans or increased access to incentives and financing offers.

Here's how the builder sales cycle works and when buyers are most likely to find the best opportunities.

Builders don't sell homes the way individual homeowners do. They follow a structured sales cycle that moves through distinct stages, from pre-sale and grand opening to closeout.

"The best time to buy a new home would not be so much dependent upon the timing but more upon the objective of the buyer," said Alexei Morgado, a Florida real estate agent and founder of the Lexawise real estate exam platform.

"If a buyer desires the largest selection of floor plans and lots and communities available, then spring and early summer months may be the best time," added Morgado. "However, if the objective is leverage, then the buyer should look for opportunities during times that the builder has finished inventories, particularly at year-end or quarterly."

Pre-sale events are the first opportunity to buy in a new community. Builders often hold them before construction is fully underway and may market them as "VIP" or "invitation only" events to generate early interest.

Buyers who purchase during the pre-sale phase usually have the widest selection of homesites, floor plans and exterior home designs. They may also have more opportunities to personalize finishes and features before construction begins.

The downside is that you're buying a home before it's built. There is no finished house to tour, and much of the community may still be under construction. Buyers must rely on floor plans, renderings and model-home examples when making decisions.

If choosing the location of your home within the community is a top priority, joining a builder's interest list before the grand opening can help you access the earliest buying opportunities.

The grand opening marks the start of full-scale sales and marketing for a new community. By this point, buyers can usually tour a model home, explore available floor plans and view finishes and upgrade options in person.

For many buyers, this is the easiest stage to evaluate a community because they can get a clearer picture of what the finished homes and neighborhood will look like.

However, prices are often higher than they were during the pre-sale phase. Some of the most desirable homesites may already be sold, and certain exterior designs may no longer be available if the builder limits how many similar-looking homes can be built on the same street.

Buyers who value seeing a finished product before making a decision may find the grand opening stage worth the potentially higher price. Those focused on securing the best location or the lowest introductory pricing may benefit from purchasing earlier.

Most large communities are built in stages rather than all at once. As builders finish selling one section of a community and prepare to open the next, they may be more motivated to sell the remaining homesites in the current section. In some cases, that can lead to modest incentives, upgrades or pricing adjustments.

"I look for quick-move-in homes, backlog, houses almost ready, a community starting its next phase and houses that have been on the market longer than expected by the builder," said Morgado. "These types of circumstances lead to a different negotiation than a buyer picking out a lot and having a new home built."

These opportunities can be easy to miss if you aren't following a community's progress. Ask the on-site sales representative how many homesites remain in the current section and whether another section is scheduled to open soon. The answers can help you understand how much flexibility the builder may have.

The final stage of a community is often when buyers have the most negotiating power. By this point, the builder is focused on selling the remaining inventory, which may include completed homes that are ready for immediate move-in and, in some cases, the model home.

Because builders typically finance construction with borrowed money, unsold homes add carrying costs. The longer a completed home sits on the market, the more it costs the builder, which can create opportunities for buyers seeking incentives, interest-rate buydowns or closing cost assistance.

Selection, however, is usually limited by this stage. Buyers are choosing from the homes, homesites and floor plans that remain rather than having their pick of the entire community. Those who prioritize customization and choice may prefer to buy earlier, while those focused on negotiating a better deal may find more opportunities near the end of a community's sales cycle.

Builder incentives tend to follow two calendars: the seasonal sales cycle and the builder's own financial reporting schedule. Understanding how those timelines work can help buyers identify periods when builders may be more willing to offer mortgage-rate buydowns, closing cost assistance or free upgrades.

Many builders set sales and closing goals throughout the year. As the end of a quarter or fiscal year approaches, sales teams may have more flexibility to offer incentives if they are trying to meet those targets.

This dynamic can be especially relevant for publicly traded builders such as D.R. Horton, Lennar and PulteGroup, which report financial results to shareholders on a regular schedule. If sales or closings are running behind expectations, builders may become more motivated to move inventory before reporting results.

Fiscal year-end deadlines can create some of the strongest opportunities. D.R. Horton's fiscal year ends on Sept. 30, while Lennar's ends on Nov. 30. Other builders, including many private and regional companies, often establish their own quarterly or annual sales goals that can produce similar opportunities.

That doesn't mean every builder automatically offers a deal at quarter-end. However, buyers shopping during these periods may have more success negotiating incentives, particularly on completed homes or inventory that has been on the market longer than expected.

These are the most common incentives builders use when they need to increase sales. In many cases, builders are more willing to offer incentives than lower the home's listed price.

"Builders would rather protect their advertised prices than cut them outright, so buyers should pay attention to incentives instead," said Andrew Gardner, founder of Leap Properties. "Mortgage-rate buydowns, closing-cost assistance, appliance packages or upgraded finishes can save buyers a lot of money without changing the sticker price."

Lowering a home's sale price can affect comparable sales in the community and potentially reduce the perceived value of homes that have yet to sell. Incentives allow builders to make a home more affordable for buyers without changing the recorded sale price.

Common builder incentives include:

• Temporary rate buydowns: A temporary buydown reduces your mortgage rate for the first one to three years before it returns to the full rate. One common version is a 2-1 buydown, where the rate is reduced by 2 percentage points in the first year and 1 percentage point in the second year before returning to the permanent rate in year three.
• Permanent rate buydowns: The builder pays discount points at closing to secure a lower interest rate for the life of the loan. For buyers who plan to stay in the home long term, this may provide greater savings than a temporary buydown.
• Closing cost credits: Closing costs typically range from 2% to 5% of a home's purchase price. Builders may offer a flat-dollar credit or "flex cash" that buyers can apply toward closing costs, prepaid expenses or financing costs.
• Upgrades and design credits: Builders may include premium features such as upgraded countertops, flooring, cabinets or appliances at little or no additional cost.

In May 2026, 62% of new-home communities offered incentives on to-be-built homes and 79% offered incentives on quick move-in inventory, according to housing data company Zonda. Those figures reflect only publicly advertised incentives, so actual usage may be higher. Buyers should pay close attention to the financing requirements attached to these offers. Many rate buydowns and closing-cost credits are available only if the buyer uses the builder's preferred lender. Before accepting an incentive package, compare the lender's interest rates and fees with at least two other mortgage lenders to make sure the overall financing terms are competitive.

Late fall and winter are historically the slowest months for new-home traffic. Builders who need to keep sales moving may increase incentive packages during this period to attract buyers.

"If saving money on purchase is the objective, then the best time to buy homes is late Q4, specifically November and December months," said Greg Field, a HomeSmart Realtor and owner of PGT Home Energy Solutions.

Data suggests buyers may find opportunities during this period. ATTOM's analysis of more than 48 million single-family home and condo sales over the past 10 years, including both new and existing homes, found that October offers the lowest buyer premium at 7.0% above automated valuation, followed by November at 7.2%.

Seasonal patterns are not the only factor driving discounts. According to the NAHB/Wells Fargo Housing Market Index, 35% of builders cut prices in June 2026, up from 32% in May. The average price reduction was 6%, and the use of sales incentives was 62%, marking the 15th consecutive month that at least 60% of builders reported using incentives.

Zonda's monthly builder survey shows similar trends. In May 2026, 21% of builders lowered prices month over month, 66% held prices steady and 13% raised prices. Roughly half of builders reported that incentives and price reductions were higher than they were a year earlier.

Field said year-end may be especially favorable for buyers considering completed inventory because builders are often trying to meet annual sales goals while reducing unsold homes before the new year.

Even so, timing isn't everything. In highly competitive markets with limited housing supply, builders may offer few incentives regardless of the season.

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The answer depends on what matters more to you: having more control over the home's design or knowing exactly what you're buying. For most buyers, the decision comes down to purchasing before construction begins or waiting until a home is already built or nearly finished.

Buying before construction begins gives you the most choices. Depending on the builder, you may be able to choose your homesite, select a floor plan and personalize finishes such as flooring, countertops, cabinets and paint colors.

The biggest drawback is time. Most new-construction homes take six to 12 months to complete, while fully custom homes can take a year or more. You'll also be making decisions based on floor plans, renderings and model homes rather than the finished product.

Construction delays caused by weather, labor shortages or permitting issues can push back your move-in date. If you're coordinating the sale of your current home or the end of a lease, that uncertainty can create challenges.

A move-in-ready home, sometimes called an inventory or spec home, is built without a specific buyer in place. Because the home is already completed or close to completion, you can tour the actual property, inspect the finishes and move in much sooner.

These homes can also create more opportunities to negotiate.

"A seller of a resale home would lower their price as a result of needing to know the final outcome," said Morgado. "A developer would keep the price high but provide concessions in terms of mortgage rate reduction, closing cost assistance, appliances, upgrades or lot value reduction."

As discussed in the incentives section above, builders are often more willing to offer concessions on completed inventory that has been sitting unsold, particularly during slower sales periods or near the end of a quarter or fiscal year.

The downside is that most of the decisions have already been made. The builder has chosen the homesite, floor plan, finishes and upgrades, leaving buyers with fewer opportunities to customize the home.

Your moving timeline may be the biggest factor in deciding whether to buy before construction starts or purchase a move-in-ready home.

If you're renting month-to-month or don't need to move for six months or longer, buying before construction begins can give you more choices. You'll typically have more opportunities to select a homesite, choose a floor plan and personalize finishes.

If you need to move within 60 to 90 days, a move-in-ready home may be a better fit. The home is already built or nearing completion, which reduces the risk of construction delays affecting your plans.

The timeline for new construction can be unpredictable. Weather delays, labor shortages and permitting issues can push back completion dates. That's an important consideration if you're coordinating the sale of your current home or trying to line up a lease expiration with your move.

Move-in-ready inventory continues to be a growing part of the new-home market. Homes built for sale take an average of 7.6 months to complete from permit to construction finish, according to the Census Bureau's Survey of Construction. Some homes that are already under construction may be ready in just a few months, while others can be occupied within 90 days.

Before deciding, consider how much flexibility you have. Buyers with longer timelines may benefit from additional customization options, while buyers on a tighter schedule may prefer the certainty and convenience of a home that is already built or nearly finished.

When buying a new-construction home, the number of homes available for sale is often a better indicator of your negotiating power than mortgage rates or the season of the year. The more unsold inventory builders are carrying, the more likely they may be to offer incentives or other concessions to attract buyers.

At the end of May 2026, about 496,000 new homes were for sale across the country, according to the U.S. Census Bureau. At the current pace of sales, that inventory would take 10.3 months to sell. Housing economists generally consider about six months of supply to be a balanced market, so 10.3 months suggests builders were carrying significantly more inventory than is typical.

Higher inventory levels can create opportunities for buyers.

"The census data shows 10.3 months of supply in the new homes market in May 2026, whereas NAR shows 4.5 months of supply in the existing home market," said Florida agent Morgado. "It is the area where buyers can use some leverage."

New-home sales in May 2026 ran at an annual pace of about 580,000, down an estimated 6.8% from the same month in 2025, though the Census Bureau notes this change falls within its margin of error. Slower sales combined with rising inventory can create conditions where builders are more willing to offer incentives, price adjustments or financing assistance.

Buyers can track inventory levels through the Census Bureau's monthly New Residential Sales report. While local market conditions vary, rising inventory is often a sign that builders may have greater flexibility when negotiating with buyers.

Opportunities to negotiate on a new-construction home can come and go quickly. Whether you're hoping to secure a desirable homesite, a mortgage-rate buydown or other incentives, being prepared before you visit a sales center can help you move quickly when the right opportunity appears.

Before you start shopping, spend time researching the builder's reputation and track record. Visit a completed community the builder delivered a year or two ago, not just the model home, to see how the homes have held up over time.

You may also want to review online customer reviews, check the builder's Better Business Bureau profile and confirm the company is properly licensed in your area. If possible, talk to current homeowners about their experience during construction and after move-in.

Getting pre-approved before you begin touring communities can help you understand your budget and put you in a position to act quickly if a builder offers a limited-time incentive.

Most move-in-ready and production homes can be financed with a traditional mortgage, while some semi-custom and custom homes may require a construction-to-permanent loan. Certain new-construction homes may also qualify for Federal Housing Administration financing, which can offer lower down-payment requirements for eligible buyers.

If you're considering a builder incentive tied to the builder's preferred lender, compare that offer with at least two other lenders to make sure the financing terms are competitive.

The sales representative working in the builder's sales office represents the builder's interests, not yours.

A buyer's agent with experience in new construction can help you compare builders, identify potential negotiation opportunities and review the purchase agreement before you sign. They may also be aware of upcoming community releases, inventory homes and incentive programs that are not heavily advertised.

Even though a home is brand new, a professional inspection is still important.

Local building inspectors verify that construction meets code requirements, but their inspections are not designed to catch every defect or workmanship issue. An independent home inspector can identify potential problems with framing, roofing, plumbing, electrical systems, heating and cooling equipment, or other components before you close on the home.

Taking these steps before you're ready to buy can help you move quickly when a builder offers a desirable homesite, a rate buydown or another incentive that fits your goals.

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Do builders raise prices between phases of a development?

Often, yes. As a community grows and new sections are released, builders may increase prices on future homesites and floor plans. Improvements such as roads, parks, pools and other community amenities can make later phases more valuable than earlier ones.

That said, pricing isn't one-directional. Builders may also offer incentives or discounts on the last few homes in a phase if they want to sell remaining inventory before opening the next section of the community.

Do builder incentives affect your home's appraisal?

Typically, no. Incentives such as mortgage-rate buydowns, closing cost credits and free upgrades generally do not reduce a home's appraised value because they do not change the recorded sale price.

This is one reason builders often prefer incentives to price reductions. A lower sale price can affect comparable sales within the community, while incentives can make a home more affordable without changing the contract price used by appraisers.

Should you buy at the beginning or end of a builder's fiscal year?

Both periods can offer advantages.

Buying early in a community's sales cycle may provide access to introductory pricing and a wider selection of homesites and floor plans. Buying near the end of a builder's fiscal year or a quarterly reporting period may provide more negotiating leverage if the builder is trying to meet sales or closing targets.

The better option depends on your priorities. Buyers focused on selection may benefit from purchasing earlier, while buyers focused on incentives may find more opportunities later in the sales cycle.

Is it risky to sign a contract on a home that hasn't been built yet?

Buying before construction begins comes with some uncertainty. Construction timelines can change because of weather, labor shortages, permitting delays or material availability.

Before signing, review the purchase agreement carefully and understand how the builder handles delays, change orders and inspections. Working with a real estate agent who has experience with new construction can help you identify contract terms that deserve closer attention.

Are model homes ever available for purchase?

Yes. Builders sometimes sell model homes after most of the community has been completed and sold.

Model homes often include premium finishes, upgrades and landscaping because they were designed to showcase the builder's work. However, they may also have experienced years of foot traffic from prospective buyers touring the property.

Before purchasing a model home, ask whether the builder's warranty coverage differs from that of a newly completed home and whether any repairs or refreshes will be completed before closing.

This article is for informational purposes only and should not be considered financial, legal or real estate advice. Consult a qualified professional for guidance specific to your situation.

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