New Home Sales
A modest decline in mortgage rates sparked an unexpectedly strong increase in new home sales this August—though experts caution these numbers may be adjusted downward in coming reports.
August Sales Climb
Sales of newly constructed single-family homes rose 20.5% in August, reaching a seasonally adjusted annual rate of 800,000 units, up from a revised July reading, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This pace represents a 15.4% increase compared to August of the previous year. The three-month moving average climbed to 713,000 from July’s 656,000. Despite this momentum, new home sales remain down 1.4% on a year-to-date basis.
“New home sales experienced a significant surge in August, while builder confidence held steady at a low reading in September,” noted Buddy Hughes, chairman of the National Association of Home Builders (NAHB) and a North Carolina-based builder and developer. “While this month’s figure may be subject to downward revision, we do expect a general improvement in sales over the coming months, supported by the recent decline in mortgage rates.”
Mortage Rates Trend Downward
According to Freddie Mac, the average 30-year fixed mortgage rate has dropped 32 basis points over the past four weeks, now sitting at 6.26%—the lowest level since early October 2024. “This downward trend in rates, combined with the recent Fed interest rate cut, signals a positive outlook for future housing demand,” explained Jing Fu, NAHB senior director of forecasting and analysis. “If this momentum continues, we expect new home sales to gain traction as more buyers reenter the market in the final quarter of 2025.”
What the Numbers Indicate
A new home sale is recorded when a sales contract is signed or a deposit is accepted, regardless of construction stage—whether not yet started, under construction, or completed. The August figure of 800,000 units represents the annualized rate if this monthly pace continued for twelve months, adjusted for seasonal variations.
Inventory & Prices
New single-family home inventory declined for the third consecutive month to 490,000 residences across all construction stages as of August—1.4% lower than the previous month but 4.0% higher than a year earlier. At current sales rates, the months’ supply stands at 7.4, down from 8.2 a year ago.
The median new home sale price reached $413,500, representing a 1.9% increase from the previous year.
Builder incentives continue playing a significant role in driving sales. Recent NAHB survey data shows 37% of builders reduced prices in August, while 66% offered sales incentives to attract buyers.
Year-to-date new home sales show significant regional variation: the Northeast experienced a 22.0% decline, the Midwest saw a 3.9% decrease, and the West dropped 7.3%. The South bucked the trend with a 3.3% increase.
For New Jersey
Homebuyers and sellers, these national trends suggest improving market conditions as we head into the final quarter of 2025. Lower mortgage rates combined with builder incentives may create opportunities for qualified buyers. Whether you’re purchasing new construction or an existing home, having experienced title insurance protection ensures your real estate transaction closes smoothly and your ownership rights are protected.
At Counsellors Title Insurance Agency, we’re here to guide you through every real estate transaction with comprehensive title insurance services tailored to New Jersey’s unique market.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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