Overview

• New home sales fell 13.7% from April to a seasonally adjusted annual rate of 623,000 units in May, marking the weakest pace since October 2024.
• Inventories of newly built homes swelled to roughly 507,000 units, equating to 9.8 months of supply and shifting market power toward buyers.
• Existing home transactions declined 0.7% year-over-year in May, according to the National Association of Realtors.
• The median price for a new home rose 3% year-over-year to $426,600 in May, outpacing wage growth and deepening affordability challenges.
• Analysts at J.P. Morgan and Redfin project either negligible gains or slight price declines through 2025 unless borrowing costs come down.