Sales of newly built single-family homes rose 1.6% in June to a seasonally adjusted rate of 628,000, up from the revised May figure, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace decreased 5.6% year-over-year as elevated mortgage rates and affordability challenges kept buyers cautious.
“New home sales are gaining some momentum at the more affordable range of the market, with homes priced below $300,000 accounting for 23% of June sales, up from 16% a year earlier,” National Association of Home Builders Chief Economist Robert Dietz said in a press release. “However, that price point is generally only achievable in markets with lower development and construction costs, particularly with respect to lower state and local regulatory costs.”
The median new-home price fell 3.3% from May to $398,300, down 2.7% year-over-year, which NAHB attributed to builder price cuts and a mix shift toward the more affordable Midwest. New-home inventory was essentially flat at 485,000 units, an elevated 9.3 months' supply.
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