Sales of newly built, single-family homes in September increased 4.1% to a 738,000 seasonally adjusted annual rate from a downwardly revised August number, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in September is up 6.3% compared to a year earlier.
Key findings
- New single-family home inventory in September remained elevated at a level of 470,000, up 8.0% compared to a year earlier.
- Completed for-sale new homes rose to 108,000, the highest level since 2009.
- The median new home sale price in September was $426,300, essentially unchanged from a year ago. The Census data reveals a gain for new home sales priced below $300,000, which made up 17% of new home sales in September, compared to 14% a year ago.
- Regionally, on a year-to-date basis, new home sales are up 19.2% in the Midwest, 1.1% in the South and 3.4% in the West. New home sales are down 1.1% in the Northeast.
NAHB's take on the data
“Despite challenging affordability conditions, home builder confidence edged higher in October as they anticipate that mortgage rates will gradually, in an uneven manner, moderate in the coming months,” says Carl Harris, chairman of the National Association of Home Builders. “There is a significant need for additional housing supply, as many prospective home buyers are entering the market.”
“Following the Fed’s actions in September, mortgage rates fell to 6.18%, from 6.5% in August,” says Jing Fu, NAHB director of forecasting and analysis. “However, new home sales will likely weaken in October due to a recent rise in long-term rates.”
