New-Home Sales Inch Up in June

New-home sales saw a slight uptick in June, but they remain lower than last year’s levels. According to a report from housing market platform Zillow, the seasonally adjusted annual rate of new-single family home sales in June was 627,000 nationwide, a 0.6% increase from May’s figure of 623,000. However, this figure is still 6.6% below the number of sales recorded in June 2024. 

The month-over-month improvement could be in part due to a recent decline in home prices. In June, the median price of a new home declined to $401,800, which is a 2.9% decrease from the year prior.

What happened: New home sales increased slightly in June, but still trail the volume of sales last year. The number of new homes on the market has outpaced sales, resulting in an increase in available homes across every region compared to last year. The Midwest – which remains relatively more affordable – was the only region to see an annual increase in new home sales. The median sale price for new homes fell to the lowest of the year, and the second lowest level since February 2021.

Why it matters: A persistent pull back in housing demand relative to supply has caused inventory to accumulate. With the pool of inventory refilling closer to typical levels, more builders are cutting their prices, just as existing home sellers are.