New home sales dropped significantly in May, leading to highest supply in 3 years.

From CNBC: 2025-06-25 13:01:00

Sales of new single-family homes dropped 13.7% in May to 623,000 units, well below the six-month and one-year averages. Wall Street analysts expected 695,000 sales. High mortgage rates at 6.95% in May hindered buyer activity. Homebuilders reported lower affordability due to high rates and consumer confidence challenges, leading to softening demand.

Nationally, the median price of a new home sold in May was $426,600, a 3% increase from the previous year. Slower sales led to a 9.8-month supply of new homes at the end of May, 15% higher than in May 2024. This is the highest supply since 2009, reflecting challenges in the housing market.



Read more at CNBC: May new home sales tank, pushing supply up to 3-year high