US New Home Sales Rise 10.9% in April Led by South, Midwest

New home sales in the U.S. rose by 10.9% in April 2025 compared to March, reaching an annualized pace of 743,000 units, the highest in three years, with gains led by the South and Midwest regions, while the Northeast experienced a decline. The median price of new homes sold was $407,200, down 2% year-over-year, and inventory levels improved to an 8.1-month supply, encouraging builders to cut prices and increase sales incentives to attract buyers amid ongoing affordability challenges. Despite low builder confidence, positive economic signals and easing recession risks support continued growth in new home sales through 2025. Existing home sales have been relatively stable after a recent dip to six-month lows, maintaining about 75% of pre-pandemic activity levels, with pent-up demand expected to increase if mortgage rates drop. Regional variations persist, but overall, the housing market shows signs of resilience with both new and existing home sales supported by strategic price adjustments and incentives. Meanwhile, local events, such as Verona's Memorial Day remembrance, have little impact on the broader real estate trends currently observed.