New Home Sales Inch Up, But Affordability Still Wins

New home sales ticked up 1.6% in June, and median prices dipped — but the bigger picture still points to a sluggish market. Here's what California homebuyers should know.

New home sales showed a modest bounce in June, rising 1.6% from May to an annualized pace of 628,000 units. That sounds encouraging, but it's still 5.6% below where we were a year ago — and the market has been essentially flat since early 2023.

On the price side, the national median new home price dropped to $398,300 in June, down about 2.7% year-over-year. Part of this reflects builders shifting toward smaller, more affordable floor plans — not necessarily a collapse in values. Still, it's a sign that builders are actively competing for buyers in a rate-sensitive environment.

For California buyers and investors, this is worth paying attention to. New construction can be a smart play right now — builders are offering incentives, rate buydowns, and more negotiating room than you'll find in the resale market. With inventory sitting at a 9.3-month supply nationally, there's no shortage of options.

If you're considering a new construction purchase in California, financing works a little differently — and we can help you navigate it. Reach out to our team to explore builder-preferred lenders, rate buydown strategies, and how to get the most out of today's market.