BREAKING: The average sales price for a new single-family home fell -$47,700 MoM in August, or -9.1%, to $478,700, the largest monthly drop on record. This is the lowest level since August 2024 and the 2nd-lowest level since September 2021. The decline was driven by a shift toward lower-priced homes, as builders cut prices and offered incentives to clear inventory. This comes as sales of homes under $300,000 rose to 22% of total sales last month from 19%, while sales of homes priced at $1 million+ fell to 4% from 6%. As a result, total new home sales jumped +6.4% MoM, to 684,000, their highest since December 2025. Meanwhile, median sales price fell -$24,200 YoY, or -5.8%, to $393,700, the 2nd-lowest reading since July 2021. US home prices are falling to keep sales alive.