There were 617,000 (SAAR) new single family-home sales nationwide in June, down 0.6% from the revised May rate of 621,000 and 7.4% below the June 2023 estimate, according to the U.S. Census Bureau.
The median price of new houses sold was $417,300, down 0.1% from a year ago.
The seasonally-adjusted estimate of new houses for sale at the end of June was 476,000, a supply of 9.3 months at the current sales rate. This is up from 9.1 months in May and up from 7.7 months in June 2023.
What happened: Newly built home sales decreased for the second consecutive month.
Why it matters: The surge in mortgage rates earlier this spring softened housing demand, leading to a slowdown in sales and an increase in both resale and new home inventory levels. But, well-priced and marketed listings are still selling relatively quickly.
Roughly 29% builders cut prices to bolster sales in June, up from 25% in May. However, the average price reduction in June held steady at 6% according to data from the National Association of Home Builders. More builders are dangling tempting sales deals to entice buyers, with 61% now offering incentives compared to 59% in May. With higher inventory, the use of incentives, such as rate buydowns, will likely persist to sweeten the deal for potential buyers.