Map Shows Where New Home Sales Falling as Prices Hit Lowest Level Since 2021

The latest data reveals that new home prices have hit the lowest level since July 2021, falling by 2.3 percent in June. This significant drop is largely due to stubbornly low demand, causing homebuilders to offer substantial discounts in an effort to attract buyers. Despite the pandemic-fueled home-buying frenzy, new homes are now priced similarly to when the market was booming just a few years ago.

However, there's a paradox here: despite the falling prices, new home sales are not picking up as Americans remain reluctant to purchase them. The inventory of new homes for sale has also risen, indicating a supply that far exceeds demand.

The situation mirrors the existing home market, where prices have been rising steadily since 2019. As of July, the median existing home price was $434,100, considerably higher than the $393,800 median price for new homes. While existing-home sales have decreased by 1.7 percent year-over-year, new home sales have plummeted by 10.5 percent from June and 6.3 percent from a year earlier.

The affordability challenges stemming from rising home prices and mortgage rates are a major factor, alongside broader concerns about the cost of living.

New home sales vary regionally. The Northeast saw a surge in sales, up 30.3 percent from June and 95.5 percent from July 2025, likely due to acute housing shortages. In contrast, the South experienced a steep decline in new home sales, down 13 percent month-over-month and 5.2 percent from July 2025. The West also saw a modest increase in sales.

Meanwhile, the demand for existing homes has faltered in the South and Midwest, while demand in the Northeast remains robust. Factors like ongoing geopolitical tensions and rising mortgage rates are contributing to this complex and uneven housing market landscape.