Sales of newly built homes saw a bump in February and March as prices fell to a five-year low, newly released data show.
Contract signings for newly built homes hit 635,000 in February and 682,000 in March the U.S. Census Bureau and Department of Housing and Urban Development reported Thursday. February was 8.9% above January, and then March was 7.4% above February. March was also 3.3% above the same time last year.
New home prices fell—March’s median sales price was $387,000, 5.3% below February’s $409,000, and 6.2% below what it was in March 2025. March’s median sales price was the lowest since July 2021.
This follow January’s nose-dive of 587,000 sales, down 17.6% from December 2025 and 11.3% from that time last year. That number, the largest percentage decline since June 2013, surprised economists. THe data was released on a delay because of the partial government shutdown.
In the meantime, the Census said last week that construction on single-family homes boosted significantly in March, which showed some home for increased demand. But that number came before the impacts of the Iran conflict and inflation. In a telling sign, new housing permits declined.
Competitive Market
The rebound in sales volume from January is encouraging, Realtor.com economist Joel Berner said. Given the high mortgage rate environment, buyers tend to be skittish. That forces more competition on the sell side. Major homebuilders have indeed reported shrinking margins as they get more generous.
“Builders are aggressively cutting prices to move inventory, which we see in the uptick to the pace of sales and the decline in sales prices,” Berner said. “Especially in March when mortgage rates rose and buyers started to feel a little more skittish, builders have been forced to offer sweeter and sweeter deals.”
The inventory of homes for sale shrunk in March, to 481,000 homes, which is 0.4% below February 2026’s 483,000 homes. And its 4.6% below March 2025’s 504,000 homes.
Meanwhile, existing home sales dropped 3.6% in March, which was down about 1% from a year prior, Relator.com found. The typical asking price in the first quarter of the year has softened, especially in the South and West. Asking prices for existing homes are still rising in the Northeast and Midwest.
All of this to say, the housing market is under pressure from a variety of factors, including inflation and the conflict in Iran. So, home sales data in the coming months may reflect continued pressure, Berner said.
“Builders are generally more tuned into buyer demand than existing home sellers, so the price softness we’re seeing in this segment is important to take note of,” Berner said. “We’ll likely see it soon in the existing segment as well.”
Tristan Navera is a senior reporter on housing policy, covering trends and solutions in the housing market from Washington, DC. He was previously a senior reporter at Bloomberg Law, and before that covered real estate for the Washington Business Journal. Earlier in his career, he spent a decade reporting on business and real estate in Dayton and Columbus, OH. A Cincinnati native, he holds a journalism degree from Ohio University.
Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial, investment, or legal advice. Stock markets, real estate, and other financial instruments involve significant risks, and past performance does not guarantee future results. You should conduct your own research and/or seek advice from a licensed financial advisor before making any investment decisions. The website owner is not liable for any financial losses or damages arising from the use of the information presented here.
About The Author
