Spring Home Sales Rise Despite Market Challenges
In April 2025, sales of newly built single-family homes in the U.S. increased by 10.9% to a seasonally adjusted annual rate of 743,000 units, according to the U.S. Census Bureau and the Department of Housing and Urban Development. This figure represents a 3.3% rise compared to April 2024. However, year-to-date sales remain 1.2% lower than the same period last year, reflecting ongoing challenges such as elevated interest rates, economic uncertainty, and rising construction costs.
The inventory of new homes for sale reached 504,000 units in April, marking an 8.6% increase from the previous year and a 1.6% rise since January. At the current sales pace, this equates to an 8.1-month supply, up from 7.7 months a year ago. To stimulate sales amid these conditions, 61% of home builders are offering incentives such as mortgage rate buydowns.
Regionally, year-to-date new home sales have declined in the Northeast (32.5%), Midwest (14.8%), and West (2.4%), while the South experienced a 5.7% increase. The median new home sale price in April was $407,200, down from $415,300 a year earlier.