New home sales weakened further in Might, extending the pullback seen over the past several months as raised home mortgage rates and price pressures continued to weigh on purchaser need. According to the current Census Bureau and HUD data, sales of brand-new single-family homes fell to a seasonally changed annual rate of 580,000, down 7.3% from April and 6.8% from a year previously.
Inventory continued to develop, with the number of brand-new homes for sale rising to 496,000, up 2.3% from April, though still 1.4% below May 2025 levels. At the current sales pace, that left months’ supply at 10.3 months, up from 9.3 months in April and 9.7 months one year back.
Home rates moved higher in Might. The average prices increased to $424,900, up 2.0% from April and basically unchanged from a year earlier. On the other hand, the typical list prices rose sharply to $540,600, a 7.8% month-to-month boost and 5.0% above May 2025 levels.
While the chart above is potentially worrying in the beginning glance, it’s always worth remembering 2 things:
1. New Home Sales data is infamously choppy month to month, and prone to in some cases significant modifications.
2. Existing Home Sales run at a yearly rate over 4 million (compared to New Home Sales at just under 600k), and they have actually been trending modestly greater in the past few months.
In other words, if incoming data confirms an issue, it’s isolated to the new construction market in the meantime.
- Sales (MOMMY): -7.3%
- Sales (YoY): -6.8%
- Inventory (MOTHER): +2.3%
- Stock (YoY): -1.4%
- Months’ Supply: 10.3 (up from 9.3 previous month; 9.7 YoY)
- Average Rate: $424,900
- Typical Cost: $540,600