New home sales fell to an annual rate of 959,000 in September, a decrease of 3.5% compared with August but an increase of 32.1% compared with September 2019, according to estimates from the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
The median sales price for a new home sold in September was $326,800. The average sales price was $405,400.
As of the end of the month, there were about 284,000 new homes available for sale in the U.S. – a 3.6-month supply at the current sales rate.
Regionally, and on a year-to-date basis, new home sales were up 25.9% in the Midwest, 22.5% in the Northeast, 18% in the West and 14.4% in the South.
“With sales up 32% from a year ago, the demand for new single-family homes remains strong as interest rates are at historic lows,” says Chuck Fowke, chairman of NAHB, in a statement. “However, the recent run-up in lumber and other material costs is leading to an increase in pricing.”
“The pace of new home sales growth over the summer was going to slow given that the gap between sales and single-family construction reached an all-time high in August,” adds Robert Dietz, chief economist for NAHB. “Indeed, September sales of new homes that had not started construction were up 47 percent compared to a year ago.”