New-home sales got a midsummer bump in August that pushed their sales pace far beyond industry forecasts. 

The 684,000 seasonally adjusted annual rate was well above the 615,000 per year consensus estimate. Month over month, August’s rate was 6.4% above July’s 643,000 rate but 2% below August 2025’s 698,000, the U.S. Census Bureau and the Department of Housing and Urban Development reported. 

“New-home sales bounced back in August as builders continue to meet buyers where their budgets are,” First American Financial Chief Economist Sam Williamson said. “Price cuts, incentives and a shift toward smaller, more affordable homes are helping builders get deals across the finish line, keeping new construction a relative bright spot in an otherwise challenging housing market.” 

The median sales price of new homes sold in August was $393,700, up 0.4% month over month and down 5.8% year over year.  

At the end of August, new-home inventory totaled 483,000, unchanged from July and 2% below 493,000 in August 2025. At the current sales rate, this inventory represents 8.5 months’ supply, its lowest level since December 2025 and 5.6% below July. Year over year, supply was flat. 

“That supply still gives buyers more choice and negotiating room as builders work to get deals across the finish line, keeping new construction a relative bright spot in today’s challenging market,” Williamson said.