New home sales in August 2025 surged 20.5% from July, reaching 800,000 units at a seasonally adjusted annual rate.
Median sales price climbed to $413,500, while the average sales price soared 11.7% to $534,100.
Inventory tightened to 7.4 months of supply, down sharply from July’s 9.0 months.
Sales of new single-family homes jumped sharply in August, signaling renewed momentum in the housing market after months of uneven activity.
According to a joint report released by the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales rose to a seasonally adjusted annual rate of 800,000 units, a 20.5% increase from July’s revised figure of 664,000. Compared to a year earlier, sales were up 15.4%.
The number of new houses available for sale at the end of August was estimated at 490,000, representing a modest 1.4% decline from July but still 4% higher than one year ago. At the current pace of sales, this inventory translates to 7.4 months of supply, a significant drop from July’s 9.0 months and below August 2024’s 8.2 months. Lower supply typically reflects stronger demand and can put additional upward pressure on prices.
Prices continue to rise
Rising sales put upward pressure on prices. The median sales price of new homes sold in August was $413,500, a 4.7% increase from July and a slight 1.9% rise compared to the same month last year. The average sales price saw an even steeper climb, reaching $534,100, up 11.7% month over month and 12.3% year over year.
Economists note that while the month-to-month jump in sales is impressive, the figures come with wide margins of error, meaning revisions in the months ahead are possible. Still, the combination of stronger sales, declining months’ supply, and rising prices points to sustained buyer interest even amid affordability challenges in many markets.