After increasing 3.5% in August, sales of new, single-family homes slid in September, falling 5.5% to seasonally adjusted annual rate of 553,000, down from 585,000 the previous month and down from 637,000 in September 2017, according to estimates from the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
With the drop, new home sales have now fallen for three of the past four months.
Regionally, new home sales increased 6.9% in the Midwest, but fell a whopping 40.6% in the Northeast, 12% in the West and 1.5% in the South.
Year-over-year, new home sales were higher in all regions except the Northeast, which saw a 16.5% decrease.
The median sales price of a new home sold in September was $320,000. The average sales price was $377,200.
As of the end of the month, there were about 327,000 new homes available for sale – about a 7.1-month supply at the current sales rate.
“New home sales activity has slowed this summer as housing affordability remains a serious issue,” says Randy Noel, chairman of the National Association of Home Builders (NAHB), in a statement. “However, sales are up from this time last year and builders continue to report consumer interest in housing.”
“Home price gains and rising interest rates are slowing down the housing market, particularly in high-cost areas and among entry-level buyers who are sensitive to price increases,” adds Robert Dietz, chief economist for NAHB. “Builders need to provide homes at different price points to address these affordability concerns. Meanwhile, overall job and economic growth should help support the housing market in the months ahead as it adjusts to higher mortgage interest rates.”
