US New-Home Sales Fall 10.5% to 0.607M in July, Missing 0.620M Estimate
Key Takeaways
- •US new-home sales declined 10.5% in July to a seasonally adjusted annual rate of 607,000, falling short of the 620,000 estimate.
- •June's sales pace was revised sharply upward to 678,000 from the initially reported 628,000, meaning July's drop was measured against a higher base.
- •New-home inventory totaled 488,000 units in July, representing a 9.6-month supply at the current sales pace, up from 8.5 months in June and above the roughly six months typically considered balanced.
- •The median new-home price was $393,800, down 2.3% from June, while the average price of $508,800 rose 4.1%, suggesting stronger sales activity at the higher end of the market.
- •Regional results diverged sharply: the Northeast rose 30.3% and the West gained 6.2%, while the Midwest fell 42.7% and the South, the largest regional market, dropped 13.0%.
US new-home sales fell to a seasonally adjusted annual rate of 607,000 in July, coming in below the 620,000 estimate. The prior month's figure was revised sharply higher, to 678,000 from the 628,000 initially reported for June. Because month-over-month changes are calculated against revised prior-month figures, July's decline is measured from that higher base.
The report, compiled jointly by the US Census Bureau and the Department of Housing and Urban Development, records a sale when a contract is signed on a new single-family home — a timelier read on buyer demand than existing-home sales, which are counted at closing, typically a month or two after a contract is signed. That timing difference is one reason the series is watched as an early signal of housing demand.
Sales dropped 10.5% in July, a sharp reversal from the 1.6% increase recorded a month earlier.
Inventories and supply
New homes for sale totaled a seasonally adjusted 488,000 in July, up 1.9% from June but down 1.6% from July 2025. At the current sales pace, that inventory represents a 9.6-month supply, up from 8.5 months in June and 9.2 months a year earlier — a level that remains high, and well above the roughly six months of supply often cited as balanced for housing markets. The rise in months' supply indicates that inventory grew relative to the pace of new-home sales.
Prices
The median new-home sales price was $393,800 in July, down 2.3% from June and 0.9% from a year ago. The average sales price was $508,800, up 4.1% from June and 5.4% from July 2025. The divergence between the two measures suggests stronger sales activity at the higher-priced end of the market.
Regional performance
The Northeast recorded the strongest gain, rising 30.3%, while sales in the West increased 6.2%. Sales fell sharply in the Midwest, dropping 42.7%, and the South declined 13.0%.
Compared with July 2025, sales surged 95.5% in the Northeast and rose 2.2% in the West. Year over year, sales fell 50.6% in the Midwest and 5.2% in the South, leaving total US sales down 6.3%. The South is the largest regional market for US new-home sales, so its decline carries particular weight in the national total.
Severe weather in the Midwest may have contributed to the sharp decline in that region. The margin of error for this data series can be high. After a revision as large as June's, the next monthly release will help clarify whether July's slide reflects a broader shift in demand or a one-month swing against a higher base.
Source: Investinglive
