by Homes also are becoming more affordable, suggesting builder incentives may be having an impact
WASHINGTON — New home sales trailed closings from August 2025, but were above July, suggesting a rebound over the summer months as families moved in time for the new school year.
New single family-home sales totaled 684,000 in August, 2% below 698,000 in August 2025 and 6.4% above 643,000 in July, according to figures released late last week by the U.S. Department of Housing and Urban Development.
New homes also became more affordable according to the report, suggesting builder incentives are helping make these properties more competitive, particularly compared with existing homes. The median price in August was $393,700, 5.8% below $417,900 in August 2025 and .4% above $392,200 in July.
By comparison, the average price of new homes sold in August was $478,700, 8.8% below $525,100 in August 2025 and 9.1% below $526,400 in July.
The increase in affordability is critical at a time when consumers are facing increased costs on many other areas of the economy such as energy bills and other goods and services, along with elevated mortgage rates. The savings in the monthly mortgage just may help families afford to spend more on furniture.
Housing inventory levels totaled 483,000 in August, 2% below 493,000 in August 2025 and unchanged from July. According to the report, this represents an 8.5-month supply at the current sales rate. This is unchanged from August 2025 and 5.6% below 643,000 in July.
By region, new home sale activity was as follows:
+ In the Northeast, sales were down 20.7% from August 2025 and down 36.1% from July.
+ In the Midwest, sales were up 22.5% from August 2025 and up 84.9% from July.
+ In the South, sales were up 3.4% from August 2025 and up 6.9% from July.
+ In the West, they were down 26.8% from August 2025 and down 15.2% from July.
Some 13,000, or 22.8% of the homes sold, were priced under $300,000; 17,000 or 29.8% were priced between $300,000 and $399,999; 12,000 or 21.1% were priced between $400,000 and $499,999; and 5,000, or 8.8% were priced between $500,000 and $599,999. Another 6,000 or 10.5% were priced from $600,000 to $799,999; and 2,000 or 3.5% were priced between $800,000 and $999,999 and also at $1 million and over.
The figures offer a window into what geographic areas of the country fared the best and what percentage of the new housing stock falls in the middle of the price spectrum. Obviously those homes need new furniture, but the ability of people to purchase that given where most of these properties are priced could determine the success of furniture retailers throughout the U.S.
