New Home Sales Rise Amid Affordability Challenges

New single-family home sales rose 6.4% in August to an annual rate of 684,000 but remain 2% below last year. Elevated mortgage rates and affordability issues continue to limit demand. Inventory held steady at 483,000 units, with an 8.5-month supply. The median sales price increased slightly to $393,700 but is down 5.8% year-over-year. Sales declined year-to-date in the Midwest, South, and West, with no change in the Northeast.