Sales of new single-family houses in March 2026 were at a seasonally-adjusted annual rate of 682,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development.
That is 7.4% above the February 2026 rate of 635,000, and is 3.3% above the March 2025 rate of 660,000, the agencies noted.
Sales of new single-family houses in February 2026 were at a seasonally-adjusted annual rate of 635,000, which is 8.9% above the January 2026 rate of 583,000.
The seasonally-adjusted estimate of new houses for sale at the end of March 2026 was 481,000. That is 0.4% below the February 2026 estimate of 483,000, and is 4.6% below the March 2025 estimate of 504,000. The agencies said that represents a supply of 8.5 months at the current sales rate.
The months’ supply is 6.6% below the February 2026 estimate of 9.1 months, and is 7.6% below the March 2025 estimate of 9.2 months.
Median Sales Price Falls
The agencies noted that the median sales price of new houses sold in March 2026 was $387,400. This is 5.3% below the February 2026 price of $409,000, and is 6.2% below the March 2025 price of $412,900. The average sales price of
new houses sold in March 2026 was $503,100. This is 3.4 percent (±7.9 percent)* below the February 2026 price of $521,000, and is 1.2 percent (±8.2 percent)* below the March 2025 price of $509,200.
“March new home sales data provides a real-time look at how the housing market is adapting to a 6%-plus average mortgage rate environment. While existing home sales have faced inventory-constrained headwinds, the new home sector is experiencing a tailwind, and a pathway for home ownership,” Bankrate Senior Economic Analyst Mark Hamrick.
First American Deputy Chief Economist Odeta Kushi said the numbers reflect some action by homebuilders.
“New-home sales are gaining momentum heading into spring, with the rebound supported in part by builder incentives, pricing adjustments, and improved affordability. Builders are adapting to the market—reducing prices, offering incentives, and shifting to smaller homes—to meet buyers limited by affordability constraints,” Kushi said. “The housing market is showing some spring bounce, proving that demand is there, but only at the right price. Yet, that demand remains fragile and highly sensitive to affordability and economic uncertainty.”
Rebound From Weather Impact
Kushi added: “New-home sales jumped to a 682,000 annualized pace in March, exceeding expectations of 652,000 and marking a continued rebound from the weather-impacted weakness at the start of the year. Following a pickup in February alongside lower mortgage rates, March activity points to improving momentum as the spring selling season gets underway.”
Kushi said that builders are adjusting prices.
“However, the strength in sales reflects not just improving demand, but continued adjustment on the supply side—particularly through pricing. The median new-home price fell to $387,400 in March, the lowest level since July 2021 and notably below the median existing-home price of $408,800,” Kushi said. “This crossover underscores the extent to which builders are actively adjusting prices to attract buyers. Incentives and price cuts remain widespread, though their intensity has eased slightly. In April, 36 percent of builders reported cutting prices, down from 37% in March, while the average price reduction declined to 5% from 6%.”
Kushi said that builders are also shifting product toward more affordable segments.
“In March, 54% of homes sold were priced below $400,000, up from 47% a year ago, reflecting a continued focus on smaller and lower-priced homes to align with constrained buyer budgets,” Kushi noted.
Sales Prove Resilient
“New-home sales continue to prove relatively resilient. Sales are running above both year-ago levels and pre-pandemic norms, supported by demographic demand, lower mortgage rates relative to a year ago, and builders’ ability to adjust pricing and incentives. This stands in contrast to the existing-home market, which remains constrained by structurally limited inventory in many markets and the lock-in effect,” Kushi said.
“At the same time, demand remains highly sensitive to affordability and macro-uncertainty. Builder sentiment has softened in recent months amid elevated interest rates, declining consumer confidence, and rising geopolitical and energy-related risks,” Kushi said. “The March rebound is a constructive signal for the spring selling season, but it is being driven in part by builder-led affordability adjustments. The market is working—but only when price aligns with what buyers can afford.”
Housing starts increased in March, but according to a report by Zillow, falling new home prices and a rising resale inventory could keep builders sidelined.
Zillow said that building permits issued in March fell to 1,372,000, which is 10.8% below the revised February rate and is 7.4% lower than in March 2025.
Single-family permits were at a rate of 895,000 in March. This is 7.9% lower than the previous year.
