New home sales dipped slightly in July, according to the Monthly New Residential Sales Report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. Compared to sales in July 2024, though, the data shows a more significant year-over-year disparity, as 8% fewer new homes sold this past July at a 5% lower average sales price.
Even so, “July new-home sales exceeded consensus expectations, and June’s sales were revised upward,” noted First American Financial Corporation Deputy Chief Economist Odeta Kushi.
On a seasonally adjusted basis, there were 652,000 new homes sold in July, which is down 0.6% from June sales of 656,000. The July sales figure was down from 710,000 new home sales in July 2024.
The National Association of Home Builders (NAHB) noted that home sales declines so far this year are much more localized, as is typically the case, but sales are nonetheless down everywhere. Regionally, on a year-to-date basis, new home sales have fallen 23.1% in the Northeast, 6.2% in the West, 4.2% in the Midwest, and 1.4% in the South, according to the organization.
The median price for new homes sold this past July was $403,800, a slight decrease of 0.8% from June’s median price of $407,200. In July 2024, the median price of new homes sold was $429,000, almost 6% higher than the July 2025 median sales price.
The Census Bureau and HUD reported the average new home sales price was:
- $487,300 in July 2025;
- $505,300 in June 2024; and
- $513,200 in July 2025.
Home builders, Kushi pointed out, are relying “heavily” on incentives like mortgage rate buydowns and price reductions to entice homebuyers in what remains a challenging affordability environment.
But “the recent pattern of sales — holding at relatively subdued levels — suggests these measures are becoming less effective,” she contended. Kushi cited NAHB’s latest data showing that in August, 66% of builders reported using sales incentives, up from 62% in July, while 37% of builders reported resorting to price cuts.
Still, Kushi noted, “new-home sales remain above pre-pandemic levels, a contrast to existing-home sales.”
NAHB pointed to high mortgage rates, rising construction costs and economic uncertainty impeding new home sales this summer. “Elevated mortgage rates and ongoing economic uncertainty are weighing heavily on buyer demand,” said NAHB Chairman Buddy Hughes.
Meanwhile, according to the Census Bureau / HUD report, there were 499,000 new homes for sale at the end of July 2025, which is about a 9.2-month supply at the current sales rate. That’s more than 7% above new home inventory levels at the same time last year.
“An elevated inventory of unsold homes, fueled by lagging sales, is prompting concerns over potential cutbacks in new construction,” warned Hughes.
Most new houses are concentrated in the $300,000 to $500,000 price range, according to Jing Fu, NAHB senior director of forecasting and analysis. That relatively modest spread reflects “ongoing pressures from elevated interest rates, labor shortages, rising construction costs, and inefficient regulatory costs.”
