At the current sales pace, that inventory represents 9.3 months of supply. The inventory of homes under construction (blue) at 252 thousand is high but is 21% below the cycle peak. The inventory of homes “not started” is at 113 thousand and is at an all-time high. In May, new home prices were up 2% from essentially flat year-over-year, while sales were down 7.3% from April and 6.8% year over year. Through the first half of 2026, builders have sold fewer new homes than in any comparable stretch since 2017.