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Breaking Flooring News

New Home Sales Jump 10.9% in April Despite Builder Pessimism

By FLOOR Trends & Installation Editors
nahb-logo (1).jpg
May 27, 2025

New home sales surged unexpectedly in April, rising 10.9% to a 743,000 seasonally adjusted annual rate despite ongoing challenges from high interest rates and construction costs. The National Association of Home Builders called the increase an "anomaly," noting that builder sentiment declined in May and year-to-date sales remain down 1.2%.

The median new home price dropped to $407,200 from $415,300 a year ago, while inventory reached 504,000 homes—representing 8.1 months of supply compared to 7.7 months previously. Regional performance varies dramatically, with the South posting 5.7% growth year-to-date while the Northeast plummeted 32.5%. With 61% of builders now offering sales incentives, including mortgage rate buydowns, the industry faces continued pressure from elevated borrowing costs and rising resale inventory that could impact pricing in the second half of 2025. Sales figures are recorded when contracts are signed and may be revised downward.

KEYWORDS: housing market market reports market trends National Association of Home Builders (NAHB) single-family housing

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