New Home Prices Become More Affordable, Dropping to $478,700

Builders are cutting prices and offering incentives as high mortgage rates and rising inventory pressure the new-home market. The average price of a new single-family home dropped 9.1% to $478,700, the lowest since August 2024, while the median price slightly increased. Sales volume rose 6.4% monthly but remains below last year. Inventory stands at 8.5 months, above the balanced six-month supply. Builders focus on lower-priced homes with incentives to boost sales.