New Home Sales Hold Steady in July

Economics
Published

Sales of newly built, single-family homes rose 1% in July to a 708,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This data reflected an expected upward revision to the June new home sales estimate.

“New home sales have leveled of this summer after a period of rising costs and strong demand,” said NAHB Chairman Chuck Fowke.

“While new home sales are up 6.9% on a year-to-date basis, they are down 27% in July compared to the same time last year,” said NAHB Chief Economist Robert Dietz. “Builders will need to watch local home prices relative to incomes, given recent gains in building materials and other construction costs.”

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the July reading of 708,000 units is the number of homes that would sell if this pace continued for the next 12 months. Inventory continues to rise to more balanced market conditions of a 6.2-month supply, with 367,000 new single-family homes for sale, 26.1% higher than July 2020.

While inventory is rising, a growing share is of homes that have not started construction. As of July 2021, 29% of new home inventory consists of homes not started construction, compared to 20% a year ago. The median sales price was $390,500, up 18.4% from the $329,800 median sales price posted a year earlier, due to higher development costs, including materials.

Regionally, on a year-to-date basis, new home sales rose in all four regions, up 7.5% in the Northeast, 10.6% in the Midwest, 9.1% in the South, and 0.5% in the West. These significant increases are due in part to lower sales volume during the Covid crisis a year ago.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Student Chapters | Workforce Development

Jul 25, 2025

NAHB's Student Chapters Helped Give Her Confidence to Pivot Careers

Zhetique Gunn's early exposure to building and problem-solving has led to national recognition and a city-level impact as an urban planner in Washington, D.C.

Jul 24, 2025

Federal Court Upholds New York State Gas Ban

The federal court for the Northern District of New York on July 23 upheld New York state’s “gas ban” legislation. New York’s legislation is the first statewide law that restricts natural gas use in new buildings, effectively banning gas stoves and other fossil fuel appliances in most new construction starting in 2026.

View all

Latest Economic News

Economics

Jul 25, 2025

Market Share of 5,000+ Square Foot New Homes Started Declines in 2024

In 2024, there were 24,000 homes that exceeded 5,000 square feet, equating to a 2.3% market share of all new homes started. Both the number and market share for 5,000+ square foot homes experienced declines from 2023, according to the annual data from the Census Bureau’s Survey of Construction (SOC).

Economics

Jul 24, 2025

New Home Sales Hold Steady at a Relatively Tepid Level

Challenging affordability conditions, elevated interest rates and economic uncertainty continue to act as headwinds on the housing sector as many potential buyers continue to stay on the sidelines.

Economics

Jul 23, 2025

Existing Home Sales Retreat to 9-Month Low

Existing home sales fell to 9-month low in June as home prices hit another monthly record high, according to the National Association of Realtors (NAR). Sluggish pace of sales suggest that higher mortgage rates and elevated home prices are continuing to sideline buyers, despite improved inventory conditions.