ConDig (24-Jul-25) New single-family home sales in the US remained largely stagnant in June, rising just 0.6% to a seasonally adjusted annual rate of 627,000 units, according to data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The modest uptick follows two of the slowest months for new home sales since October 2024, as elevated mortgage rates—averaging above 6.8%—continue to weigh on buyer activity.
“New home sales remained flat last month, highlighting persistent weakness in the housing market despite seasonal expectations for growth,” said Buddy Hughes, chairman of the
National Association of Home Builders (NAHB).
“Elevated mortgage rates and sustained price levels continue to limit purchasing power, particularly among first-time and middle-income buyers.”
NAHB economist Danushka Nanayakkara-Skillington added that builder incentives and price adjustments have yet to meaningfully move the needle.
“Despite targeted incentives and pricing adjustments by builders, demand remains tepid, suggesting these measures have had limited impact on overall sales volume,” she said.
Unless financing conditions improve or household income sees a substantial increase, NAHB warns a near-term rebound in new home sales remains unlikely.
Inventory and Pricing Trends
The inventory of new homes for sale continued its upward climb, reaching 511,000 units in June—up 1.2% from the previous month and 8.5% higher than a year ago. At the current sales pace, this represents a 9.8-month supply, significantly above the 8.4-month level recorded in June 2024. Completed, move-in-ready inventory totaled 114,000 homes, up 21.3% year-over-year.
Meanwhile, the median sale price of new homes fell 4.9% month-over-month to $401,800, a 2.9% drop from June 2024, signaling some pricing relief in response to dampened demand.
Regional Breakdown
On a year-to-date basis, all four U.S. regions reported declines in new home sales:
- Northeast: Down 25.6%
- Midwest: Down 8.5%
- South: Down 1.6%
- West: Down 4%
The data reflects an ongoing cooling of the housing market, with affordability challenges and economic uncertainty prompting many would-be buyers to remain on the sidelines.