New home sales declined 10.9% in September to a seasonally adjusted annual rate of 603,000, the U.S. Census Bureau announced. Compared with September 2021, new home sales were down 17.6%.
âBuilders continue to face lower buyer traffic due to declining affordability conditions as the housing downturn continues,â stated Jerry Konter, chairman of the National Association of Home Builders (NAHB). âBuilder sentiment has declined for 10 consecutive months. The entry-level market in high-cost areas has been particularly affected, with growing numbers of first-time and first-generation buyers priced out of the market.â
Along with the decline in builder sentiment, mortgage rates approached 7%, the NAHB added.
Regionally, new home sales fell 20.2% in the South and 0.7% in the West. New home sales surged 56.0% in the Northeast and grew 4.3% in the Midwest.
The median sales price for new houses sold in September was $470,600, with an average sales price of $517,700.
New home inventory at the end of September was 462,000, a 9.2 month supply at the current sales pace.
