The rate of new-home sales spiked 20.5 percent to 800,000 in August compared to July, according to data released Wednesday by the U.S. Census Bureau and Department of Housing and Urban Development.
The annual rate is now the highest it’s been since January 2022. Sales of newly constructed homes were up in every region except the West, where sales fell 5.7 percent compared to a year ago.
TAKE THE INMAN INTEL SURVEY FOR SEPTEMBER
The uptick came as the median price of new homes was close to the median price of existing homes over the summer.
“Falling mortgage rates and more price parity with existing homes likely drove more buyers into the new home market in August,” said Lisa Sturtevant, chief economist of Bright MLS. “Over the summer, the median price of a new home fell below the median price of an existing home.”
Dr. Lisa Sturtevant
The median sales price of new homes was $413,500, up 1.9 percent from a year earlier. In July, the median sales price of single-family homes was $422,400, according to the National Association of Realtors.
Buyers scooping up new homes in August ate into the available supply. There are 7.4 months of supply at the current sales rate. That’s 17.8 percent lower than July, and 9.8 percent lower than last August.
Sturtevant said that, while the data from August was promising, it was too soon to say whether it was an anomaly or the start of a trend.
“While the August sales numbers are good news for the home building sector, it is possible that this is a one-month blip,” Sturtevant said. “With the inventory of existing homes on the rise, the new-home market could still remain sluggish through the end of the year. Builders focusing on smaller and more affordable homes will likely see the strongest demand.”
Existing-home sales have largely been trending lower than last year for most of 2025. The National Association of Realtors is set to release August data tomorrow.
