Large jump in new home sales in August
In August, new home sales increased, likely spurred from a drop in mortgage rates. According to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The study found that the increase is up 20.5 percent compared to July 2025. The inventory of new houses sold sits at 800,000,15.4 percent above the August 2024 rate of 693,000.
By region new home sales are up 3.3% in the South. While the Northeast, Southwest and West are down. The median sales price of new houses sold in August 2025 was $413,500, a bit above the July 2025 price of $395,100.
While this large jump is a positive, a survey done by the National Association of Home Builders (NAHB) reported that 37% of builders cut prices in August and 66% used sales incentives.
“New home sales experienced a significant surge in August, while builder confidence held steady at a low reading in September,” said Buddy Hughes, chairman of the NAHB and a home builder and developer from Lexington, N.C. “While this month’s figure may be subject to downward revision, we do expect a general improvement in sales over the coming months, supported by the recent decline in mortgage rates.”
