"Belated new-home sales levels reached a more than three-year peak in September and October, but selling prices plummeted as homebuilders dialed in concessions to pull hesitant buyers from the sidelines. Even as new-home sales show signs of solid demand, homebuilders face mounting pressure to bridge affordability challenges by leveraging incentives, costly mortgage buydowns, and lower prices. These tactics come at the expense of their operating margins, but are necessary to move abnormally elevated levels of started- and completed inventory."
"Census data, delayed due to the Federal shutdown in September and October, reveal that the number of new homes sold stayed relatively flat between September and October. However, sales increased 18.7% year over year. Further, the September-October 2025 period is now the strongest two-month stretch for new-home sales since January and February 2022. New single-family home sales in October 2025 were at a seasonally-adjusted rate of 737,000, down just 1,000 from September."
New single-family home sales reached a more-than-three-year peak in the September–October 2025 period, with October at a seasonally-adjusted 737,000 sales, nearly unchanged from September. Year-over-year sales rose 18.7%, making the two-month stretch the strongest since January–February 2022. Median new-home sales price fell to $392,300, down 3.3% sequentially and 8.0% year-over-year, narrowing the new-home price premium to a record low. Homebuilders are deploying concessions, costly mortgage buydowns, and price reductions to address affordability and move elevated started and completed inventory, compressing operating margins. The South accounted for roughly 513,000 October sales and is working through an oversupply caused by pandemic-era speculative building.
Read at www.housingwire.com
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