Median New Home Sales Price Falls 5.3 Percent in March

The median sales price for a new single-family home fell $21,600, or 5.3 percent, in March to $387,400. The price reached its lowest level since July 2021 and recorded the largest monthly decline since November 2024. After adjusting for inflation, the median real home price declined 6.3 percent from the prior month to the lowest level since 2014.

The average sales price dropped 3.4 percent in March to $503,100, the lowest since mid-2025. The gap between the median and average sales prices widened to $115,700. This represents the largest spread on record.

The widening gap between median and average prices indicates that a small number of high-end sales continue to lift the average while the majority of transactions occur at lower price points. Sales data show the housing market is experiencing softening demand.

The reported price changes come as new-home sales activity has slowed in recent months. Builders and buyers have faced elevated mortgage rates and higher construction costs throughout the period.

The inflation-adjusted decline of 6.3 percent in March pushed real median prices to levels last seen more than a decade ago. This real-price measure accounts for broader changes in consumer prices during the intervening years. The combination of nominal and real price drops occurred even as the gap between median and average prices reached a record $115,700.

Market participants continue to monitor whether the trend will extend into the second quarter.