New home sales increased 12.3% in September to a seasonally adjusted annual rate of 759,000, according to the U.S. Census Bureau.
The rate surged 33.9% compared with September 2022.
“New home sales surged in September largely due to the low existing home inventory rate, as many homeowners with attractive mortgage rates are electing to stay put rather than purchase a move-up home with a much higher interest rate,” stated Danushka Nanayakkara-Skillington of the National Association of Home Builders. “To compensate for this high interest rate environment, more builders are building smaller homes, which has resulted in a decline in the median new home price.”
Regionally, new home sales jumped 22.5% in the Northeast, 14.6% in the South, 7.5% in the West and 4.7% in the Midwest.
The median sales price was $418,800, with an average sales price of $503,900. The seasonally adjusted estimate of new houses for sale at the end of September was 435,000, a 6.9-month supply at the current sales pace.
The full report can be found here.
