WASHINGTON, D.C. — Sales of new single-family homes in the United States fell sharply in May, signaling potential headwinds in the housing market despite rising prices and growing inventory.
According to data released last week by the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales were at a seasonally adjusted annual rate of 623,000 units in May 2025. This marks a 13.7 percent decline from April’s revised rate of 722,000 and a 6.3 percent decrease from the May 2024 estimate of 665,000.
The inventory of new homes for sale continued to expand, reaching 507,000 units at the end of May — a 1.4 percent increase over April and 8.1 percent higher than a year earlier. At the current sales pace, this represents a supply of 9.8 months, up notably from 8.3 months in April and 8.5 months in May 2024.
Despite the slowdown in sales, home prices continued to climb. The median sales price rose to $426,600, up 3.7 percent from April and 3.0 percent year-over-year. The average sales price also increased to $522,200, reflecting a 2.2 percent gain from the previous month and a 4.6 percent rise over May 2024.
Analysts will closely watch whether elevated prices and rising inventories signal shifting buyer demand or broader economic pressures in the coming months. The next new residential sales report is scheduled for release on July 24.
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