New-Home Sales Continue to Decline in July

New-home sales were down in July. According to the CalculatedRisk blog, citing data from the U.S. Census Bureau, sales of new single-family homes fell month-over-month by 0.6% to a seasonally-adjusted annual rate of 652,000. From July 2024, sales of new homes fell even further by 8.2% from a seasonally-adjusted rate of 710,000.

At the same time, months of supply remained unchanged from June at 9.2 months. While this is well above a healthy range for unsold housing inventory—which most housing experts consider to be about 4 to 6 months—it is much lower than the record high of 12.2 months in January 2009. Meanwhile, the all-time record low was 3.3 months of supply in August 2020.

The seasonally-adjusted estimate of new houses for sale at the end of July 2025 was 499,000. This is 0.6 percent below the June 2025 estimate of 502,000, and is 7.3 percent above the July 2024 estimate of 465,000.

This represents a supply of 9.2 months at the current sales rate. The months' supply is virtually unchanged from the June 2025 estimate of 9.2 months, and is 16.5 percent above the July 2024 estimate of 7.9 months.