High prices, hesitant demand weigh on June new home sales

New home sales posted a modest increase in June but were down from a year earlier, while prices also fell year over year, further suggesting that the 2026 spring selling season fell short of expectations. According to newly released U.S. Census Bureau data, single-family new home sales ticked up 1.6% between May and June. However, at a seasonally adjusted annual rate of 628,000, new home sales in June fell 5.6% compared to the year prior. New construction home prices last month also took a hit. The median sales price of new houses sold in June 2026 was $398,300, the lowest level recorded since July of last year. That figure is down 3.3% from May’s $412,000 adjusted sales figures and 2.7% below the June 2025 median of $409,200. Builders continue to use price discounts and incentives to sell inventory, particularly in an affordability-constrained environment marked by persistently elevated mortgage rates. First American Deputy Chief Economist Odeta Kushi also noted that builders, in response to affordability constraints, continue to construct smaller and cheaper homes. The National Association of Home Builders (NAHB) reported that the average new single-family home size has generally...