February New Home Sales Rise 1.8% to 676,000 Annual Rate

In February 2025, new single-family home sales in the U.S. rose by 1.8% month-over-month, reaching a seasonally adjusted annual rate of 676,000 units, which is also a 5.1% increase from the previous year. Regional differences were notable, with the Midwest showing a significant 20.6% rise, while declines were observed in the Northeast and West. The median sales price for new homes decreased to $414,500, reflecting a 1.5% drop year-over-year, as inventory levels rose to 500,000 units, representing an 8.9-month supply at the current sales pace. This increase in supply and the recent decline in mortgage rates provide some optimism for homebuilders, despite overall caution in the market due to ongoing affordability challenges. Existing home sales also saw positive momentum, rising 4.2% in February. However, the cumulative impact of high home prices and interest rates continues to pose challenges for buyers.