by They also were 10.5% below June, suggesting that buyers continue to remain on the sidelines amid affordability challenges
WASHINGTON — New home sales were down from last July and from June, according to the latest report from the U.S. Department of Housing and Urban Development.
The summer slowdown suggests that consumers are remaining on the sidelines because of high interest rates and overall housing affordability, despite incentives homebuilders are offering to lower prices.
It also suggests that dealers in different markets where home sales remain sluggish could be feeling the impact of the slowdown as people staying in their current homes delay furniture purchases.
July new home sales totaled 607,000, down 6.3% from 648,000 in July 2025 and 10.5% below 678,000 in June.
According to the report, the median home sale price was $393,800, .9% below $397,300 in July 2025 and 4.1% below $403,100 in June. The average sales price in July was $508,800, 5.4% above the average price of $482,900 in July 2025.
Other highlights of the report are as follows:
+ The seasonally adjusted estimate of new homes for sale at the end of July was 488,000, which is 1.6% below 496,000 in July 2025 and 1.9% above 479,000 in June.
+ This represents a 9.6-month supply at the current rate of sale. This is 4.3% above 9.2 months in July 2025 and 12.9% above 8.5 months in June.
By region, the activity was as follows:
+In the Northeast, sales were up 95.5% from July 2025 and up 30.3% from June.
+ In the Midwest, they were down 50.6% from July 2025 and down 42.7% from June.
+ In the South, they were down 5.2% from July 2025 and down 13% from June.
+ In the West, they were up 2.2% from July 2025 and up 6.2% from June.
In July, 9,000 of the homes sold were priced below $300,000; 17,000 were between $300,000 and $399,000; 9,000 were between $400,000 and $499,000; 5,000 were between $500,000 and $599,000; and 5,000 were between $600,000 and $799,000.
Some 1,000 were between $800,000 and $999,000, and 3,000 were $1 million and over.
Thus the data shows where the most sales are taking place, which is squarely in the middle of the market, although that term is certainly relative to one’s income and savings.
Still, retailers can use this information as a starting point to research and compare what’s selling in their respective markets. Floor plans and room sizes of those homes also can help guide their mix of product and marketing efforts.
For many consumers, buying a new home is a major milestone. Buying furniture to beautify that space — whether it’s bedroom, living room or dining — should be a close second. Here at Home News Now, we will continue to track the sale of new homes and existing homes along with the overall pace of new construction. Hopefully activity in all these areas will rise in the coming months and beyond to help spur some of those purchases.
