New-Home Prices Plunge to 5-Year Low as Sales Falter

Prices for newly built homes have hit their lowest level in five years, as homebuilders continue to grapple with weak buyer demand, newly released data shows.In July, the median sales price of new homes fell to $393,800, down 2.3% from the prior month and the lowest since July 2021, the U.S. Census Bureau and the Department of Housing and Urban Development reported on Tuesday.That price is also far below the median existing home price of $434,100, meaning prices for new homes remain lower than for previously owned homes, an inversion of historical norms.Meanwhile, contract signings for newly built homes plunged 10.5% in July from the prior month, falling to a seasonally adjusted annual rate of 607,000. That's also down 6.3% from a year ago, a sign that even isn't boosting sales.That's having a knock-on effect on the number of new builds. The Census Bureau's latest new residential construction report found that single-family housing starts in July were down 9.9% from June and 15.7% lower than a year earlier.A regional look at new home sales"The bright spot is the Northeast," says Realtor.com® senior economist Joel Berner. The seasonally adjusted annual rate of new homes sold was at ...