New-Home Sales Falter at the Start of the Year

Sales of newly built single-family homes in January fell 17.6% month-over-month to a seasonally adjusted annual rate (SAAR) of 587,000 units, and by 11.3% year-over-year. This pace was the lowest recorded since October 2022, according to Zillow's analysis of U.S. Census Bureau data.

As sales decline, new homes have become more affordable in recent months

As new-home sales declined, so did the sales price of those that did sell. The median price of new houses sold in January was $400,500, down by 6.8% from January 2025. At the same time, slightly lower mortgage rates have increased buying power by about $30,000. This data suggest that, while sales fell at the start of the year, they could start to climb in the near future. 

Improved inventory in the new-home market should aid affordability, as well. The seasonally adjusted estimate of new houses for sale at the end of January was 476,000, which equates to a supply of 9.7 months at the current sales rate. In December, there was just eight months of supply, and January 2025 recorded nine months of supply.