"As the pace of new-home sales slowed, inventory rose to 499,000 units at the end of July, up 7.3% compared to a year ago. On a monthly basis, however, inventory was down 0.6%. This supply represents 9.2 months of inventory at the current sales pace. With inventory rising and home sales slowing, the median sales price posted both monthly and yearly declines in July. The figure of $403,800 was down 0.8% month over month and 5.9% year over year."
"Builders have relied heavily on incentives, such as mortgage rate buydowns, upgrades, and even price reductions, to support demand and maintain an edge over the existing-home market, said Kushi, First American's deputy chief economist. However, the recent pattern of sales holding at relatively subdued levels suggests these measures are becoming less effective amid strained affordability, rising resale inventory, and macroeconomic uncertainty."
New-home sales exceeded expectations in July after June's numbers were revised upward. Inventory increased to 499,000 units at the end of July, a 7.3% rise year over year and a 0.6% monthly decline, equating to 9.2 months of supply at the current sales pace. The median new-home sales price fell to $403,800, down 0.8% month over month and 5.9% year over year, the largest annual drop since November 2024. New home prices fell below existing-home prices by nearly $20,000. Regionally, sales declined in three of four regions, while builders increased incentives amid strained affordability and rising resale inventory.
Read at www.housingwire.com
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