U.S. new single-family home sales returned to negative territory in September after a surprise gain in August, sliding 10.9% month over month to 603,000, while the median price of a new home sold during the month rose, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported.
Year over year, the pace of newly built home sales in September was down 17.6%.
The median sales price of a new house sold last month was $470,600, compared to $435,800 in August and $413,200 a year ago.
The inventory of new homes for sale in September rose to 9.5 months from 8.6 months in August and 6.5 months in September 2021.
“It remains to be seen the extent to which product and pricing will adjust, but if rates continue to rise, it is likely that we will see the for-sale market continue to slow towards years end — and prices of homes will continue to adjust downward,” RCLCO Real Estate Consulting principal Kelly Mangold said. “This is all happening at a time when there remains a strong demographic demand for new for-sale homes due to millennials having children, pandemic increases in pet ownership and the widespread adoption of hybrid/remote working.”
By region, the number of new-construction homes sold was mixed, with gains of 56% and 4.3% in the Northeast and Midwest, respectively, and declines of 20.2% and 0.7% in the South and West, respectively.