Buyers See More Choices, Lower Prices in New Home Market

The latest New Home Sales report (released today) shows a slight uptick in June after last month’s sharp drop. The seasonally‑adjusted annual sales pace rose to 627,000. This represents a modest +0.6% gain from May’s revised 623,000, but remains ‑6.6% below the June 2024 level of 671,000.  For all practical purposes, the pave of sales has been relentlessly sideways and stable for more than 2 years--even if there's been a bit of volatility at times. Regional Breakdown (Sales, June 2025) South: +5.1% MoM (driving national gain) Midwest: +6.3% MoM Northeast: ‑27.6% MoM West: ‑8.4% MoM Market Inventory & Pricing Homes for sale: 511,000 units (+1.2% from May; +8.5% YoY) Months’ supply: 9.8 months (highest since November 2022) Median sales price: $401,800 (‑4.9% MoM; ‑2.9% YoY) Average sales price: $501,000 (‑2.0% MoM; +1.1% YoY) Big Picture Takeaway New home sales rose modestly in June but remain well below last year’s levels, held back by elevated mortgage rates (~7%) and excess inventory. The housing market shows signs of cooling, with the median price slipping—providing some relief for buyers, though mortgage costs continue to constrain demand.