N※N

New home sales surge to four-year high in August

  //house-home.news-articles.net/content/2025/09/2 .. ome-sales-surge-to-four-year-high-in-august.html
  Published in House and Home on Thursday, September 25th 2025 at 17:18 GMT by WISH-TV
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

New Home Sales Rise in August 2025, Despite Rising Mortgage Rates
Wisconsin TV News – September 2025

When the August 2025 “New Home Sales” report hit the wire, many industry watchers had been bracing for a continued slowdown. Instead, the data revealed a modest uptick in sales, signaling that buyers remain hungry even in a higher‑rate environment. The report, released by the National Association of Realtors (NAR) on September 1, showed that 1,235,000 new homes were sold in the month—a 1.3 % increase from July and a 3.8 % rise year‑over‑year. The price of a newly built home climbed to an average of $347,200, up 4.1 % from last year, while the median price was $325,500, reflecting the continued demand for newer, more energy‑efficient dwellings.

Key Takeaways from the August Data

The NAR’s data, accessible via the “New Home Sales” page on their website, underscore a continuing trend: while the pace of new construction remains constrained, buyer interest has not faltered. Builders are responding by accelerating projects in regions where land is still plentiful, and the average price increase reflects the ongoing premium buyers are willing to pay for modern amenities such as smart‑home tech and high‑efficiency HVAC systems.

Why Sales Are Rising Amid Higher Rates

1. Limited Inventory
   According to the U.S. Census Bureau’s “New Residential Construction” report, the inventory of unfinished new homes at the end of August was 1.8 % below the 12‑month moving average. The shortfall—estimated at 120,000 units—keeps demand strong as buyers race to secure a new home before the inventory cycle ends.

2. Interest‑Rate Stabilization
   While the Federal Reserve’s policy rate has been hovering around 5.5 % since mid‑2024, mortgage rates have only recently begun to stabilize after a six‑month spike. The Mortgage Bankers Association (MBA) reports that the average 30‑year fixed rate in August was 6.75 %, down 0.1 % from July. This marginal easing has provided a window for buyers still weighing their options.

3. Shift Toward Suburban and Rural Areas
   In Wisconsin, the Milwaukee and Dane County regions have seen the most significant sales gains. The Wisconsin Housing and Economic Development Authority (WHEDA) reports that the average new home price in Dane County rose 5.2 % year‑over‑year, while Milwaukee’s increase was 3.8 %. The shift reflects a continued trend of buyers seeking more space after the pandemic‑era work‑from‑home boom.

4. Government Incentives
   The U.S. Department of Housing and Urban Development (HUD) recently rolled out a new first‑time‑homebuyer program offering down‑payment assistance for buyers in the 25‑to‑45 age bracket. While the program is still in its pilot phase, early uptake has nudged demand in the Midwest.

Voices from the Field

“We’re seeing buyers who are more focused on the long‑term value of their homes,” said Sarah Martinez, a regional sales manager for GreenLine Homes in Madison. “Even with rates higher than last year, the demand for newer, greener homes is outpacing supply. It’s a sign that the market is still healthy.”

Meanwhile, Tom Lee, an analyst at the National Association of Realtors, cautioned that the August uptick “might be a short‑term reprieve.” Lee added that “if mortgage rates climb above 7.5 % again, we could see the pace slow significantly.”

What This Means for Wisconsin Residents

The August rise in new home sales is a double‑edged sword for Wisconsinites. On the one hand, it means that the supply of new housing is likely to increase, potentially moderating price growth. On the other, the limited inventory could keep prices above the median level for the foreseeable future.

Local news outlets, such as WIŠT‑TV’s “Housing Update” segment, have highlighted the need for continued investment in affordable housing. “The price of a new home in Wisconsin is now over $300,000 on average,” reported broadcaster Dan Phillips. “For many families, that’s a significant barrier. We’re calling on state policymakers to streamline permitting processes and offer incentives to build more affordable units.”

Where to Find the Data

• National Association of Realtors – New Home Sales page (https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics/new-home-sales)
• U.S. Census Bureau – New Residential Construction data (https://www.census.gov/construction/nrc/)
• Wisconsin Housing and Economic Development Authority – Housing Market Trends (https://wheda.wisconsin.gov/)
• HUD – First‑Time Homebuyer Programs (https://www.hud.gov/program_offices/housing/PeopleWithDisabilities/FTHB)

These resources provide deeper dives into the underlying factors that shape new home sales and are invaluable for buyers, builders, and policymakers alike.

Looking Ahead

The NAR’s quarterly projections suggest that new home sales could stay flat to slightly grow through the first half of 2026, contingent on mortgage rate trajectories and economic conditions. With the U.S. economy showing signs of resilience—GDP growth of 2.3 % in the first quarter of 2025 and unemployment rates hovering around 3.8 %—the market remains cautiously optimistic.

For Wisconsin residents, the August uptick offers a hopeful glimpse that the market’s supply constraints may begin to ease, but the higher cost of borrowing remains a challenge. As state officials and the private sector work together to address housing affordability, the next few months will be critical in determining whether the trend of rising new home sales continues or reverts to a slower pace.