The U.S. Census Bureau and the Department of Housing and Urban Development’s monthly measure of new-home sales found sales down 7.3 percent month-over-month in May and down 6.8 percent from last year at the same time. The slowdown marks the second consecutive monthly decline in new home sales. It also highlights a different dynamic in the new home market. While new home sales have been falling, existing-home sales recently hit their highest level since December 2025. Part of that is due to affordability. New homes are generally more expensive than older homes and, in May, the median sales price rose even higher. In fact, the median sales price of new houses sold during the month was $424,900, 2 percent higher than April. With a lack of affordably priced new homes for sale and builders dealing with higher material costs, the market is waiting for change. (source)
