"In July, sales of newly built homes decreased despite price cuts and incentives from homebuilders, as buyers faced affordability challenges. The U.S. Census Bureau and Department of Housing and Urban Development reported a decline of 8.2% in signed contracts for new single-family homes compared to a year earlier. The median sales price of new houses in July was $403,800, down 5.9% from the previous year, and new homes are priced lower than existing homes, contrary to historical trends."
"Sales of newly built homes dropped by 8.2% in July compared to a year earlier, despite price reductions and incentives. The median sales price of new homes in July was $403,800, down 5.9% from the previous year, making new homes more affordable than existing homes. Existing-home sales increased by 2% in July, hinting at a preference for resale homes over new construction."
Signed contracts for new single-family homes fell 8.2% in July year-over-year, reflecting continued affordability headwinds for buyers despite homebuilder price cuts and incentives. The median new-home sales price in July was $403,800, down 5.9% year-over-year, and new homes were priced lower than existing homes, reversing the historical pattern. Existing-home sales rose about 2% in July, suggesting buyer preference for resale homes amid elevated mortgage rates. Homebuilders have offered discounts and incentives, including an average 5% price reduction reported in August, but affordability and high rates continued to suppress new-home buying activity.
Read at SFGATE
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