• There were 627,000 (SAAR) new single-family home sales nationwide in June. That’s 0.6% above from the revised May rate of 623,000. Sales of newly built homes are 6.6% below the June 2024 estimate, according to the U.S. Census Bureau.
• The median price of new houses sold was $401,800, down 2.9% from a year ago.
• The seasonally adjusted estimate of new homes for sale at the end of June was 511,000, a supply of 9.8 months at the current sales rate. This is up from 9.7 months in May and higher than the 8.4 months in June 2024.

What happened: New home sales increased slightly in June, but still trail the volume of sales last year. The number of new homes on the market has outpaced sales, resulting in an increase in available homes across every region compared to last year. The Midwest – which remains relatively more affordable – was the only region to see an annual increase in new home sales. The median sale price for new homes fell to the lowest of the year, and the second lowest level since February 2021.

Why it matters: A persistent pull back in housing demand relative to supply has caused inventory to accumulate. With the pool of inventory refilling closer to typical levels, more builders are cutting their prices, just as existing home sellers are. 

Although builders continue to offer incentives, the size of price cuts and rate buydowns must also increase along with buyer hesitation. But while a higher share of builders are cutting prices, the magnitude of those price cuts has remained fairly constant according to the National Association of Home Builders.

More builders cut their prices in June — 37% of builders — compared to 29% this time last year. However, the average price reduction in June remained at just 5%, lower than the 6% seen in June 2024. The share of builders offering sales incentives has also remained steady. Nearly 62% of builders provided sales incentives of all forms in June, compared to 61% a year ago.

For potential buyers, price declines will help to improve housing affordability. Without further downward price adjustments, surpassing last year’s sales level could prove challenging.