New home sales in the United States dropped in July, continuing the slump seen across much of 2025 to date.
Single-family housing sales last month were at a seasonally-adjusted annual rate of 652,000. This is 0.6% lower than the rate in June, and 8.2% below July 2024.
Around 499,000 new houses were available for sale at the end of July, dropping by 0.6% from June but 7.3% above July 2024. “This represents a supply of 9.2 months at the current sales rate,” according to the U.S. Census Bureau.
“The months' supply is virtually unchanged (±16.7 percent)* from the June 2025 estimate of 9.2 months, and is 16.5 percent (±19.0 percent)* above the July 2024 estimate of 7.9 months.”
June’s sales rate was also revised upwards from 627,000 units to 652,000 units.
The median sales price last month was US$403,800, down 0.8% from June and falling 5.9% from July 2024, and is the lowest median price seen in eight months.
Most houses sold were priced between US$300,000 and $399,999, at 18,000 units. This was a decline of around 1,000 units from June, while the $400,000-499,999 price bracket posted an increase of 1,000 units to 12,000.
Sales of houses priced at more than US$1,000,000 also dropped by about 1,000 units, reaching 2,000.
The South reported the most sales in the July period, at 388,000. This was a decrease from the 402,000 seen in June, however.
The West was the only region where sales numbers rose from June, increasing from 137,000 to 153,000.
Authorised residential construction in July also declined, per the Census Bureau, falling by 2.8% from June and by 5.7% from July 2024. July's existing home sales were up by 2.0% over June, however.
Federal Reserve Chair Jerome Powell said last week that the Fed could cut rates at its September meeting amid weakness in the jobs and housing markets, though he said inflation remained a concern.
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