New Home Sales Rise in March
New home sales rose 8.8% in March 2025 to a seasonally adjusted annual rate of 693,000 units, according to data from the U.S. Census Bureau and HUD. This marks the highest pace since September 2023 and reflects improved builder sentiment driven by stable mortgage rates and low existing home inventory. On a year-over-year basis, new home sales were up 8.3%.
The median sales price of new homes in March was $430,700, down 1.9% from a year ago, while the average price was $524,800. Inventory remained elevated with a 9-month supply at the current sales pace. Regionally, sales jumped in the West (28.6%) and South (5.3%), remained flat in the Midwest, and declined in the Northeast. The data underscores continued buyer demand and cautious optimism among builders amid a still-challenging affordability landscape.
