Washington, D.C.—Elevated borrowing costs, rising inflation and economic uncertainty continued to weigh on buyer demand in July, according to the National Association of Home Builders (NAHB).
Sales of newly built single-family homes fell 10.5% to a seasonally adjusted annual rate of 607,000 in July, according to new government data. The U.S. Department of Housing and Urban Development and U.S. Census Bureau released the figures.
The July pace followed a sharply upwardly revised June estimate. New home sales were also 6.3% lower than a year earlier.
“New home sales fell in July to their slowest pace since the start of the year as affordability challenges limited home buyer traffic,” said Bill Owens, chairman of the NAHB and a home builder and remodeler from Worthington, Ohio. “NAHB surveys show that a majority of builders continue to offer sales incentives, including mortgage rate buy-downs, to support new home sales.”
NAHB expects the single-family home building market to post another annual decline in 2026.
“The single-family home building market is on track for a second consecutive annual decline in 2026,” said Robert Dietz, NAHB chief economist. “New home sales are down more than 4% on a year-to-date basis. NAHB research and economic data show community builders continue to outperform the broader market, while the Northeast remains a relative bright spot, with new home sales up nearly 9% year-to-date.”
A new home sale occurs when a buyer signs a sales contract or provides a deposit. The home can be not yet started, under construction or completed.
The seasonally adjusted annual rate represents the number of homes that would sell if the July pace continued for 12 months.
Inventory rises, prices ease
New single-family home inventory increased to 488,000 units in July. That was up 1.9% from June but down 1.6% from a year earlier.
Inventory represented a 9.6-month supply at the current sales pace. That marked the highest level since January.
The median new home sales price fell 2.3% from June to $393,800. The median price was also 0.9% lower than a year earlier.
Higher-priced homes gained share despite the broader slowdown. Homes priced above $800,000 accounted for 8% of new home sales in July, up from 5% a year earlier.
Regional results
New home sales increased in only one region on a year-to-date basis.
Sales in the Northeast rose 8.8% but fell 6.4% in the Midwest, 3.7% in the South and 6.4% in the West.