New home sales dip slightly, but outperform forecasts

Published 25/08/2025, 15:02
New home sales dip slightly, but outperform forecasts

The number of new single-family homes sold last month, as measured by the New Home Sales report, has been released. The actual figure came in at 652K, which, while slightly less than the previous month’s figure of 656K, still managed to outperform the forecasted number.

Market analysts had predicted a more significant drop, with forecasts averaging around 635K. The actual figure of 652K, therefore, represents a positive surprise for the market, exceeding expectations by approximately 2.7%. This suggests a more robust housing market than many had anticipated, which could have a positive impact on the USD.

When compared to the previous month’s figure, the actual number of new home sales has decreased slightly. The previous number stood at 656K, meaning the current figure represents a decrease of approximately 0.6%. While this indicates a slight cooling in the housing market, the decline is much less than what was predicted, which could be seen as a bullish sign for the housing market and the wider economy.

The New Home Sales report tends to have a significant impact on markets, particularly when released ahead of the Existing Home Sales report, due to their tight correlation. The higher than expected reading in this instance should be taken as a positive sign for the USD, as it suggests a stronger housing market and, by extension, a more robust economy.

Despite the slight dip from the previous month, the fact that the actual number of new home sales exceeded forecasts should provide some reassurance to investors and analysts. It suggests that the housing market, a key indicator of economic health, remains relatively stable. This could bode well for the broader economy and the USD in the coming months.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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