The latest data from the U.S. Census Bureau found that, in August, 716,000 new single-family homes were sold—at the median sales price of $420,600.
The new-home sales figure in August was also a noticeable annual increase from the August 2023 results, when 652,000 new homes were sold. These results also represent a slight drop from July, when 751,000 new homes were sold at the median sales price of $429,800. Dr. Lisa Sturtevant, chief economist of Bright MLS, noted, “As the market shifts, homebuilders are increasingly having to drop prices to attract buyers who are up against affordability challenges.”
At first glance, this is a simple decline, but a third variable adds a wrinkle. The number of new houses for sale increased from July to August (462,000 to 467,000). This influx of 5,000 new homes suggests that construction is keeping pace to fill the inventory gap, though demand may not be high enough for these homes to instantly be plucked off the market.
The final tally of 467,000 new homes represents 7.8 months of supply—foreshadowing a buyer-friendly market. Sturtevant forecasted:
“As mortgage rates come down, homebuilders could expect more buyer traffic this fall. However, the inventory of existing homes has been increasing as more owners are listing their home for sale, and lower rates will encourage more homeowners to list. As a result of more existing homes on the market, there could be less demand for new homes.”
National Association of Home Builders Chief Economist Robert Dietz countered that “while a 7.8 months’ supply may be considered elevated in normal market conditions… new and existing total months’ supply remains below historic norms at approximately 4.7.”
He noted, however, that “this measure is expected to increase as more home sellers test the market in the months ahead.”
For the full report, click here.
