The US real estate market is experiencing a housing surplus, with new single-family home sales falling by 8.2% to 652,000, and the median new home sale price dropping to $487,300, writes UNN with reference to Inman.
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Sales of new single-family homes continued to decline in July 2025, as developers faced a market of buyers who were not responding positively to rising mortgage rates and home prices.
US summer home sales hit lowest pace in 10 years19.08.25, 12:56 • [views_3194]
According to data released on Monday by the US Census Bureau and the Department of Housing and Urban Development, new single-family home sales decreased by 8.2% year-over-year and by 0.6% month-over-month to 652,000 (seasonally adjusted).
Economists surveyed by Reuters had predicted an increase in new single-family home sales to 630,000 units.
By the end of July 2025, seasonally adjusted, the estimated number of new homes for sale was 499,000, down 0.6% from the previous month and up 7.3% from July 2024 (465,000). The sales forecast for June was also raised from last month (627,000) to 656,000.
At the current sales rate, 499,000 homes for sale represent a 9.2-month supply, which is consistent with the inventory level in June 2025. This inventory forecast is 16.5% higher than last year's forecast (7.9 months) from July 2024.
Meanwhile, the median sale price decreased by 0.8% compared to the previous month, reaching $403,800. This price is also 5.9% lower than the median sale price in July 2024, which was $429,000.
The average sale price of new homes sold in July 2025 was $487,300, which is 3.6% lower than the average sale price in June 2025 and 5% lower than the average sale price in July 2024.
"The market is experiencing a housing surplus - both new and existing - and buyers are not interested in such prices and mortgage rates," said Heather Long, chief economist at Navy Federal Credit Union. "Builders are trying to sell off properties by offering discounts and incentives, but this is not yet enough to attract most buyers. It is indicative that the median price of a new home is now slightly lower than the median price of an existing home for sale, which shows how actively developers are trying to attract buyers."