The online sales benchmarks provide a thorough overview of homebuilder online sales metrics, covering a wide range of markets, from large to small builders, and include both established and emerging online sales programs. These benchmarks represent the standard performance metrics for online sales programs within the industry.
In Q1 of 2025, we saw some promising momentum at the start of the year, with a normal increase in lead volume from December to January. Online Sales Specialists were busy gearing up for the Spring market. As we moved through Q1, however, we saw a shift in lead volume, consumer sentiment, and the buying cycle. Let’s dig into the numbers to better understand what’s driving these trends—and where the opportunities lie.
In Q1 of 2025, we saw an initial uptick in interest, resulting in an increase in leads in our funnel. From Q4 of 2024 to Q1 of 2025, we saw an 8% increase in lead volume, and our lead-to-appointment conversion rate grew by 1%. This increase in conversion, coming in at a 38% lead to appointment metric, is actually quite telling: it reinforces that the leads we’re attracting aren’t just more numerous—they’re also conversion-ready. These individuals aren’t just browsing; they’re motivated enough to take the next step and schedule an appointment.
When we take a broader view—stacking Q1 results over the past six years—a consistent pattern emerges: fewer leads of higher quality, paired with right-sized online sales programs, yields better conversion outcomes. It’s a reminder that volume alone isn’t the goal; lead quality is of utmost importance and drives performance in this metric.
Q1 lead to appointment conversion comparisons:
In Q1 of this year, we saw the highest counts of leads in January, and there has been a slow decline since then. The appointment-to-sale conversion rate decreased by 3% in Q1 of this year, coming in at 18%, compared to 21% in Q4 of 2024. This shows us that even with the influx of leads at the beginning of the year, the buying cycle has extended, given current market conditions. To create urgency, we have to lean into evoking emotion and getting appointments excited about the process to move the needle here and create momentum. Incentives are common and expected, and with high prices, margins have to be reevaluated. Overall, when looking at years prior, an 18% appointment-to-sale conversion is actually a normal rate, even though it may not feel that way.
Q1 appointment to sale conversion comparisons:
Our online sales contribution came in at 49% for Q1 this year. While it did see a 1% decrease from Q4 of 2024, this is a normal and healthy rate when compared to previous years. In fact, the 2025 Q1 online sales contribution is better than it has been in the last two years for Q1. We know that prospecting accounts for padding metrics towards the end of the year when leads dip. The market is indicating that we will need to maintain our steady efforts this year, which is a significant reason why having a high-performing online sales program will be invaluable in 2025.
Q1 Online Sales Contribution Comparisons:
When we break out our top performers, we see outstanding metrics yet again. However, we do see the same industry trends in their metric fluctuations. Top-performing online sales teams came in with an impressive 54% lead-to-appointment conversion rate, and rounded out their numbers with a 19% appointment-to-sale conversion rate, and a 51% contribution to overall company sales.
Tips for success in Q2
