Americans hoping to buy a home got some good news Tuesday—as did the Trump administration.
When President Trump took office two months ago, his administration announced it would deliver “emergency price relief” to a nation strained by Bidenflation. That included a promise to “drastically lower the cost of housing and expand housing supply.”
And that’s what’s happening in the U.S. housing market, as the latest data on sales of newly built homes provides a rare glimmer of relief for homebuyers who have been burdened by high prices and tight supply.
New home sales rose in February. The U.S. Census Bureau reported that sales of newly built single-family homes increased by 1.8 percent to a seasonally adjusted annual rate of 676,000, a 5.1 percent rise compared to a year earlier.
Prices are moving in the right direction for buyers. The median price of a new home fell to $414,500, down 1.5 percent from a year ago and a 3 percent decline from January. The decline in prices is attributed to builders increasingly focusing on the more affordable $300,000 to $400,000 range, which made up 34 percent of sales, the highest share in over a year.
The supply of new homes available for sale rose to 500,000 units, the highest level since 2007, representing an 8.9-month supply at the current sales rate. This means buyers have more choices than they’ve had in years, and with builders offering more incentives and cutting prices, conditions are increasingly favorable for those looking to buy.
“Prospective homebuyers should seriously consider a new build,” said Joel Berner, Senior Economist at Realtor.com, citing favorable market conditions and more affordable inventory. Homebuilders are also offering various incentives, including rate buydowns and price reductions, to attract buyers.
The uptick in sales was primarily driven by gains in the South and Midwest, regions where homebuilding is most prevalent and where severe winter weather had previously suppressed demand. However, sales fell sharply in the Northeast and declined slightly in the West.
Despite the improvements for buyers, the broader market still faces challenges. Elevated mortgage rates continue to weigh on affordability, and many builders remain cautious due to higher-than-normal inventory levels. Additionally, policy uncertainty surrounding tariffs and economic growth continues to influence decision-making among builders and buyers alike.
Still, home builders say they are optimistic that President Trump’s tax cuts and regulatory rollback could give a needed boost to the industry.
“Although policy uncertainty may be holding back some home buyer and business decisions, builders have hope that regulatory reform and tax policy extension will act as tailwinds later this year,” said Buddy Hughes, Chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Lexington, N.C.
The increase in supply and lower prices come as President Trump’s promises to “drastically lower the cost of housing and expand housing supply” are beginning to be fulfilled. While it may be too early to credit specific policies, the current market conditions suggest that some of the relief sought by frustrated buyers is finally arriving.
As spring approaches, a crucial period for home sales, many will be watching to see if this positive momentum continues.
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