Pulte home prices declined in 2025; small drop expected in 2026
The country’s third-largest builder, PulteGroup, is forecasting a much better spring selling season amid changing housing market conditions, the company said in its earnings report Thursday.
"Looking ahead to 2026, the industry enters a new year with improved affordability as mortgage rates are almost a full percentage point lower than a year ago," CEO Ryan Marshall said on the call. "Whether through price reductions or incentives, new-home prices have reset lower while consumers benefited from another year of income growth as wages increased by upwards of 4%." The 30-year fixed-rate mortgage averaged 6.10% this week, near three-year lows.
In its earnings report, Pulte expected its average sale price through 2026 to land between $550,000 and $560,000. In 2025, it was $566,000.
Through 2025, first-time buyers saw even more reductions. Pulte’s first-time buyers segment paid an average sale price of $467,000 in the fourth quarter of 2024 and $438,000 in the fourth quarter of 2025. These price changes, paired with rising wages and lower rates, could make for a more positive new-home market in 2026, according to Marshall.
But the shifting market conditions will not return the new-home market to normal. Pulte will continue its sales incentives this year — a tactic builders use to attract buyers through freebies, lower mortgage rates or price deductions — but the percentage of incentives will hinge on the performance of the spring selling season, company leadership said.
Pulte also noted on the call that 2025 was the fifth-most-profitable year in the company’s history. The company also announced the sale of off-site construction subsidiary Innovative Construction Group. Pulte purchased ICG in 2020 to explore manufactured building parts for faster construction times and cost savings.
“We've just come to the conclusion that we think we're better off focusing on the core competency: buying land, entitling, developing, building homes,” said Marshall.
Home Depot cuts 800 jobs
Home Depot laid off 800 workers Wednesday and will require corporate employees to return to a five-day workweek starting in April.
“To extend our industry-leading position, we must position the company to move faster and stay even more closely connected to our customers and frontline associates,” CEO Ted Decker said in a statement.
In an employee memo, Decker said the changes are essential.
“In-person engagement enables more meaningful support for store and field associates, drives results and reinforces our people-centric culture and inverted pyramid,” he said.
Jobless claims decrease
Data from the U.S. Department of Labor shows that the number of Americans filing new applications for unemployment benefits fell by 1,000 in the week ending Jan. 24.
The total number of adjusted initial claims was 209,000. “The previous week's level was revised up by 10,000 from 200,000 to 210,000,” the department said.
The moving average over the last four weeks was 206,250, an increase of 2,250 from the previous week's revised average.
Data also shows that the seasonally adjusted insured unemployment rate was 1.2% for the week ending Jan. 17, unchanged from the previous week.
Federal Reserve Chair Jerome Powell said in a statement that "labor market indicators suggest that conditions may be stabilizing after a period of gradual softening."
"There is no evidence that layoffs are picking up. There are firms that are trying to reduce their headcount, but this is being done almost exclusively through attrition rather than outright job cuts," Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, said in a statement.