Think America’s housing market is frozen solid?
Not so fast — new home sales just staged a surprise comeback.
In August, sales of newly built single-family homes jumped 20.5% to an annual rate of 800,000 units.
This was the fastest pace since early 2022 and well above forecasts.
What’s Behind The Sudden Rush?
Think big discounts, juicy incentives, and falling mortgage rates tempting hesitant buyers back into the game.
“Take the gain with a huge grain of salt,” economists at Wells Fargo warned, pointing out new-home data is notoriously volatile and often revised.
Oxford Economics’ Nancy Vanden Houten added the surge “likely overstates any improvement” in housing overall.
After all, new homes make up only about 14% of the U.S. market.
Still, builders are doing their best to move inventory — 39% cut prices last month, the highest share since the pandemic.
Others offered perks like covering closing costs or lowering mortgage rates.
The average 30-year rate has slid to 6.26%, down sharply from pandemic highs, giving buyers extra breathing room.
So, is this a real thaw or just a blip? Redfin’s Chen Zhao suggests waiting for another month of data.
For now, the market’s message is clear: affordability rules, and builders know it.
