As resale inventory remains scarce in many areas, the new house industry has become increasingly vital in addressing housing demand.
The most recent figures released today (delayed due to the government shutdown in the fall of 2025) show that new single-family house sales are stabilizing following a period of increased volatility.
While month-to-month activity varies, sales are higher than a year ago, indicating that buyer interest in newly built homes has grown.
In October, sales of newly built single-family houses jumped 18.7 percent year on year to a seasonally adjusted annual rate of 737,000 units, according to the U.S. Department of Housing and Urban Development and the United States Census Bureau.
This was a modest 0.1 percent fall from September and a 1.2 percent decrease year to date.
A new house sale is recorded whenever a contract is signed or a deposit is accepted, regardless of the state of construction.
The seasonally adjusted annual rate represents the rate of sales that would occur over a 12-month period if current conditions remained unchanged.
In October, new single-family home inventory stood at 488,000 units, steady from the previous month and 1.7 percent higher than a year ago.
At the current sales pace, the months’ supply of new homes was 7.9, down from 9.3 months a year ago but still above the six-month level considered balanced.
The combined new and existing house inventory has crept lower in recent months, with total months’ supply falling to 4.9, reflecting decreased construction activity.
Meanwhile, inventory circumstances in the existing home market have gradually improved, and prices in both markets have moderated, helping to underpin buyer demand despite continued affordability worries.
On a non-seasonally adjusted basis, there were 124,000 completed, ready-to-occupy homes for sale by the end of October 2025, up 10.7 percent from the previous year.
Completed homes accounted for around one-quarter of total inventory, with homes under construction accounting for 51%.
The remaining 24% of homes sold in October had not begun building when the sales contract was completed.
In October, home prices showed hints of further easing. The typical new house sale price fell 3.3 percent to $392,300, an 8.0 percent fall from a year ago.
Affordability has improved at the low end of the market, with 25% of new houses priced below $300,000, the greatest share in recent months.
Thirty percent of residences were valued above $500,000, with the remaining 45 percent falling between $300,000 and $500,000.
Year-to-date new house sales fell in three of the four regions: 0.1 percent in the Midwest, 7.2 percent in the West, and 22.9 percent in the Northeast.
The South was the only region to see growth, with sales up 2.9%.
[Read more about this topic on Eyeonhousing.org]