United States New Home Sales

Sales of new single-family homes in the United States surged by 10.9% from the previous month to a seasonally adjusted annualized rate of 743,000 units, extending the downwardly revised 2.6% increase in the previous session and sharply higher than market expectations of a softer rate of 692,000 homes sold. It was the sharpest increase since August of 2022, lifting home sales to their highest since February 2022, likely helped by builder incentives aimed at alleviating affordability challenges that have a firm grip on the resale market. This was enough to offset the increase in mortgage rates during the month. Sales rose the most in the South (11.7% to 478,000) and the Midwest (35.5% to 84,000). In turn, sales dropped sharply in the Northeast (-14.8% to 23,000). The median home price rose by 0.8% to $407,200. In turn, housing inventory was at 504,000 units, equivalent to 8.1 months of supply at the latest sales rate.