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U.S. New Home Sales Plunge 10.5% Amid High Prices

2/26/2025

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Summary

Story summary

In January 2025, new home sales in the U.S. plummeted by 10.5%, hitting a three-month low at an annual rate of 657,000. Struggling with soaring mortgage rates and affordability challenges, buyers faced a median price of $446,300. Meanwhile, inventory swelled to 495,000 homes, signaling a nine-month supply at the current sales pace.

History

Historical Context

In January 2025, U.S. new home sales dropped 10.5%, echoing the 2008 financial crisis. Rising mortgage rates and affordability issues mirror past events when easy credit led to a housing bubble. Historical underbuilding and regulatory constraints continue to shape today’s housing market challenges.

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Story summary

In January 2025, new home sales in the U.S. plummeted by 10.5%, hitting a three-month low at an annual rate of 657,000. Struggling with soaring mortgage rates and affordability challenges, buyers faced a median price of $446,300. Meanwhile, inventory swelled to 495,000 homes, signaling a nine-month supply at the current sales pace.

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