--- title: "US New Home Sales Soar For 2nd Straight Month As Prices Plunged In March" type: "News" locale: "en" url: "https://longbridge.com/en/news/285225355.md" description: "US new home sales have increased for the second consecutive month, rising 7.4% in March following an 8.9% increase in February. Despite this growth, sales remain below December 2025 levels, with a year-over-year increase of 3.3%. The median new home price dropped significantly from $407k to $387.4k, the lowest since July 2021. Sales surged in the South by 11.1%, while the Northeast also saw a rebound. Homebuilders are attracting buyers through incentives and price cuts, improving affordability amid rising mortgage rates." datetime: "2026-05-05T14:32:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285225355.md) - [en](https://longbridge.com/en/news/285225355.md) - [zh-HK](https://longbridge.com/zh-HK/news/285225355.md) --- # US New Home Sales Soar For 2nd Straight Month As Prices Plunged In March After collapsing in January (-17.6% MoM - worst since July 2013), **US New Home Sales have risen strongly for two straight months** \- up 8.9% MoM in February and up 7.4% MoM in March... Source: Bloomberg This lifted new home sales by 3.3% YoY, but the total SAAR remains below Dec 2025 levels... Source: Bloomberg New home sales have really gone nowhere in three years. Median **new home prices plunged in March from $407k to $387.4k - its lowest since July 2021**. That is the biggest gap between median and average prices on record... Implying a growing number of homes being sold below the average price as the **supply of new homes also plunged**. Mortgage rates are higher in the last month but had fallen notably during the reporting period for today's data... By region, **sales in the South, the nation’s biggest home-selling region, increased 11.1%,** while purchases in the Northeast rebounded sharply. March contract signings fell in the Midwest and West. Homebuilders, who have been using a combination of incentives and price cuts, **saw a pickup in prospective-buyer traffic in March** after severe winter weather limited buyer demand early this year. So it appears the market is doing Trump's job for him (despite rising rates) as price-drops improve affordability (which is shaping up to be a key issue in the midterm elections in November. ### Related Stocks - [512200.CN](https://longbridge.com/en/quote/512200.CN.md) - [516750.CN](https://longbridge.com/en/quote/516750.CN.md) - [SRVR.US](https://longbridge.com/en/quote/SRVR.US.md) - [IYR.US](https://longbridge.com/en/quote/IYR.US.md) - [VNQ.US](https://longbridge.com/en/quote/VNQ.US.md) - [IDGT.US](https://longbridge.com/en/quote/IDGT.US.md) - [SCHH.US](https://longbridge.com/en/quote/SCHH.US.md) - [XHB.US](https://longbridge.com/en/quote/XHB.US.md) - [XLRE.US](https://longbridge.com/en/quote/XLRE.US.md) - [NAIL.US](https://longbridge.com/en/quote/NAIL.US.md) - [REZ.US](https://longbridge.com/en/quote/REZ.US.md) - [ITB.US](https://longbridge.com/en/quote/ITB.US.md) - [HOMZ.US](https://longbridge.com/en/quote/HOMZ.US.md) - [159768.CN](https://longbridge.com/en/quote/159768.CN.md) - [PKB.US](https://longbridge.com/en/quote/PKB.US.md) - [159787.CN](https://longbridge.com/en/quote/159787.CN.md) ## Related News & Research - [Toll Brothers Announces Final Opportunity to Purchase a New Home at The Cove at Encinitas in Coastal Southern California | TOL Stock News](https://longbridge.com/en/news/286452679.md) - [Most Americans Can't Afford New Homes](https://longbridge.com/en/news/286672971.md) - [NAHB housing market Index for May 37 versus 34 estimate](https://longbridge.com/en/news/286784835.md) - [Home Depot says its customers are healthy, but here's where they are holding back](https://longbridge.com/en/news/286948933.md) - [Home Depot Q1 Preview: Wall Street Is Slashing Targets For A Stock Already At 3-Year Lows](https://longbridge.com/en/news/286807226.md)