New home sales rose sharply in August as builder incentives and discounts drew more buyers. The annualized pace reached 800,000, up 21% from 664,000 in July and 15% from 693,000 a year earlier—the highest since January 2022, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD). The new home sales surge exceeded forecasts.
The median price of a new home was $413,500, up 1.9% from July and 4.7% year over year. Despite still-elevated mortgage rates, sales activity increased while prices inched higher.
Sales improved nationwide. The Northeast jumped 72%, the South rose 25%, the Midwest gained 13%, and the West increased 5.6%. The broad advance points to steady buyer interest in several parts of the country.
Builders leaned on financing “buydowns,” closing-cost help, and other discounts to move inventory. Those incentives made some new homes more competitive with existing listings, helping lift new home sales in August.
The National Association of Home Builders (NAHB) reported that 39% of builders reduced prices—its highest share in five years—and 65% offered incentives. These efforts supported the pickup in contracts.
Lisa Sturtevant, chief economist at Bright MLS, said demand for smaller homes has also aided the rebound, noting that downsizing buyers are finding new construction appealing.
New home sales remain a key driver in a tight market, and incentives from builders continue to shape buyer choices as the fall selling season unfolds.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
