Although national new home sales demonstrated notable weakness throughout September 2025, with newly listed homes declining 1.2% year-over-year and 1.8% month-over-month to levels more than 16% below the April 2025 peak, the market exhibited signs of a sharp rebound entering October. This followed a dramatic surge from 664,000 units in July to 800,000 in August.
Regional variations characterized the September downturn, as the South experienced a 3.5% decline in new listings while the West fell 0.1%. This contrasted sharply with the Northeast’s 1.3% increase and the Midwest’s 2.4% growth.
Metropolitan areas including Indianapolis, Charlotte, and Detroit recorded the largest annual increases in new listings at 10.6%, 9.7%, and 8.0% respectively. Meanwhile, Denver and Austin surpassed pre-pandemic supply levels, even as Hartford and Chicago trailed furthest behind historical benchmarks.
Market weakness manifested through widespread price reductions, with nearly 20% of listings experiencing cuts. These reductions were concentrated primarily in the $350,000 to $500,000 price bands, affecting mid-market affordability amid mortgage rates averaging 6.4% on 30-year fixed loans.
The median days on market extended to 62 days, approximately one week longer than September 2024. Pending sales remained flat year-over-year, marking the weakest performance recorded during 2025. Approximately 24 of the top 50 markets now have listings sitting longer than pre-pandemic averages, primarily in the South and West regions.
Regional pricing trends diverged substantially. Western median list prices declined 3.6% year-over-year, while the Northeast and Midwest experienced per-square-foot price rises.
Inventory dynamics continued their 23rd consecutive month of gains, with active listings rising 17% year-over-year nationally. However, overall supply remained 13.9% below pre-pandemic levels. In contrast to the U.S. market challenges, Singapore’s public housing program continues to provide stability for approximately 80% of its population through comprehensive homeownership initiatives.
Months’ supply for new homes dropped to 7.4 in August from 9.0 in July and 8.2 in August 2024. Total new homes for sale declined to 490,000 units, representing a 1.4% decrease from July. The August inventory level showed a 4.0% increase from the 471,000 houses available in August 2024.
The national median list price held steady at $425,000 in September. Meanwhile, the average national home sales price for new builds reached $534,100 in August, marking an 11.7% increase from July.
Persistent affordability pressures continue to affect lower and mid-tier market segments despite the overall price increases.
