US Builders Shift to Cheaper Homes as July Sales Drop 10.5% and Prices Hit $393,800
Updated
Updated · Real Estate News · Aug 25
US Builders Shift to Cheaper Homes as July Sales Drop 10.5% and Prices Hit $393,800
3 articles · Updated · Real Estate News · Aug 25
Summary
July new-home sales fell 10.5% from June to a 607,000 annual rate, the weakest pace since January, as steep declines in the Midwest and South outweighed gains in the Northeast and West.
Mortgage rates near the past year's highs kept many buyers priced out, pushing builders to offer smaller, lower-priced homes rather than relying only on discounts.
The median new-home price slipped to $393,800 from $403,100 in June, the lowest in five years, while the gap versus existing-home prices widened to $40,300 — the biggest since 1999.
Inventory rose to 9.6 months from 8.5 months in June, giving buyers more leverage even as builders face tariff-related costs, labor shortages and falling housing starts.
Combined new and existing home supply reached about 5.3 months, the highest since 2014, underscoring a housing market where buyers have more options but demand remains weak.