Sales of new single-family homes in the U.S. rose 1.8% to a seasonally adjusted annual rate of 676,000 in February 2025, rebounding from a sharp, revised 6.9% drop in January but coming in slightly below market expectations of 680,000.
US new home sales slightly below forecasts
While the modest recovery suggests some resilience in the housing market, high mortgage rates continued to weigh on demand, keeping sales under pressure and limiting a stronger rebound. Elevated borrowing costs, coupled with affordability challenges, have deterred many potential buyers, particularly first-time homeowners, from entering the market.
Regionally, sales showed mixed results. The West and Northeast experienced notable declines, with sales falling 13.6% to 140,000 and 21.4% to 22,000, respectively, reflecting weaker demand in higher-cost markets. In contrast, the South, the largest housing market, saw a 6.6% increase to 438,000, while the Midwest posted the strongest gain, surging 20.6% to 76,000, suggesting that lower-cost regions remain more attractive to buyers amid affordability concerns.
Average price reaches $487,100
The median home price stood at $414,500, while the average price reached $487,100, indicating that while prices have moderated from previous peaks, affordability remains a key constraint. Meanwhile, housing inventory remained elevated at 500,000 units, representing an 8.9-month supply at the current sales pace. This suggests that while new home availability has improved, demand has not yet fully caught up, leaving builders facing longer selling periods and the potential need for price adjustments or incentives to attract buyers.
