Key facts
- New U.S. single-family home sales rose 1.6% in June to an annualized rate of 628,000 units.
- This figure exceeded economists' forecasts of 610,000 units.
- However, June sales were down 5.6% from the previous year.
- The median sales price of new homes in June was $398,300, a 2.7% decrease year-over-year.
- Builders are employing price cuts and incentives to manage inventory amid high mortgage rates and affordability issues.
- New home inventory remains elevated, representing 9.3 months of supply at the current sales pace.
New U.S. single-family home sales saw a modest increase of 1.6% in June, reaching a seasonally adjusted annual rate of 628,000 units, which surpassed economists' expectations. Despite this uptick, sales were down 5.6% compared to the same period last year, indicating persistent challenges for buyers.
The median sales price of new homes sold in June was $398,300, marking a 2.7% decrease from June 2025 and the lowest level since July of the previous year. Builders are continuing to offer price discounts and incentives to attract buyers in an environment constrained by high mortgage rates and affordability issues.
Economists note that builders are responding by constructing smaller and less expensive homes. The average size of new single-family homes has been declining, with more than half of June sales priced below $400,000. However, achieving prices below $300,000 is generally limited to markets with lower development costs.
New home inventory, while down slightly from May, remains historically high, representing 9.3 months of supply at the current sales pace. The inventory of completed homes for sale is significantly elevated compared to recent lows. The South region continues to dominate new home sales, accounting for about 66% of the market over the past year.
Overall, the spring selling season was described as choppy, with builders selling fewer new homes in the first half of 2026 than in any comparable period since 2017. Factors contributing to the slowdown include weak household formation, excess inventory, and rising construction costs.