TL;DR
Get backup power and energy gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
U.S. sales of newly built single-family homes declined 0.6% in September to a seasonally adjusted annual rate of 676,000, 5.3% below the level a year earlier. The National Association of Home Builders cited elevated mortgage rates and affordability challenges, while inventory stood at an 8.4-month supply.
Sales of newly built single-family homes fell 0.6% in September to a seasonally adjusted annual rate of 676,000, according to data from the U.S. Department of Housing and Urban Development and the Census Bureau. The pace was 5.3% lower than a year earlier, as elevated mortgage rates and affordability concerns continued to limit demand, the National Association of Home Builders said.
The September estimate followed a downwardly revised August figure. The annualized rate represents the number of homes that would sell over 12 months if September’s pace continued, after seasonal adjustment; it is not a count of homes sold during September alone. A sale is recorded when a contract is signed or a deposit is accepted, regardless of whether construction has begun or the home is complete.
Inventory of new single-family homes totaled 476,000 units at the end of September, down 1% from August and 2.3% from a year earlier. At the current sales pace, that amounted to an 8.4-month supply. The number of completed homes ready for occupancy was 111,000.
The median sale price was $400,400, up 3.9% from August but down 3.9% from September a year earlier. Regional year-to-date results varied: sales were down 0.5% in the Midwest, 1.3% in the South and 9.2% in the West, while the Northeast recorded a 2.3% increase.
Mortgage Costs Weigh on Buyers
The figures show how financing costs and home prices can constrain demand even when builders have homes available. The 8.4-month supply indicates a sizable inventory relative to the current sales pace, but that does not mean homes are affordable or that buyers can qualify for financing. For households considering a purchase, borrowing costs affect monthly payments; for builders, weaker demand can put pressure on sales and pricing decisions.
NAHB chairman Bill Owens said builders are using incentives and pricing adjustments to attract buyers, but he argued that elevated mortgage rates and high home prices are restricting the pool of households able to purchase. The September results also matter to retailers and suppliers serving home construction: slower sales may influence builders’ expectations for future activity, though the report does not quantify those effects.
Products Worth Considering
Blueair Blue Pure 511i Max Smart Air Purifier
Samsung 48-Inch S90H OLED 4K Smart TV (2026)
eufy Security eufyCam C37 4-Camera Kit with 360° Pan and Tilt
As an affiliate, we earn on qualifying purchases.
How September Sales Are Measured
The figures come from a joint release by HUD and the Census Bureau and describe sales of newly built single-family homes. Because sales are counted when a contract is signed or a deposit is accepted, the measure covers homes at different construction stages—not only completed houses available for immediate move-in.
The annual rate is seasonally adjusted and expresses the September pace as a hypothetical 12-month total. The reported 0.6% monthly decrease came after August’s estimate was revised downward. The source material does not provide the revised August total, so the size of that revision cannot be stated here.
NAHB linked the decline to softer builder sentiment and buyer sensitivity to financing costs. That is the association’s assessment of the market; the sales release itself reports the sales, inventory and price measures rather than establishing a single cause for the monthly change.
Outlook Depends on Financing Costs
The September release does not establish how much of the decline was caused by mortgage rates, home prices, economic uncertainty or other factors. NAHB officials identified those pressures, but the supplied data do not isolate their individual effects. It is also unclear whether the monthly decline will continue, since one month of sales data does not establish a trend.
The report does not provide mortgage-rate figures, buyer qualification data or details on the value and prevalence of builder incentives. The 8.4-month supply is calculated at the current sales pace and could change if sales or inventory move. Regional year-to-date comparisons also do not show how each region performed in September alone.
Next Sales and Rate Reports
Readers can compare the next monthly HUD and Census Bureau release with September’s figures to see whether sales, inventory and prices continue to shift. Further updates to prior-month estimates may also affect comparisons. The source material does not specify a publication date for the next report.
Mortgage rates and affordability will remain key indicators to watch alongside new-home sales. Any further claims about demand, builder incentives or the effect of financing costs should be weighed against the data and attributed to the organizations making them.
Key Questions
How many new homes were sold in September?
The seasonally adjusted annual rate was 676,000. This is a 12-month equivalent based on September’s pace, not the number of homes sold during the month.
How did September sales compare with August and a year earlier?
Sales declined 0.6% from August and were 5.3% below September a year earlier. The August estimate had been revised downward.
How much new-home inventory was available?
There were 476,000 new single-family homes in inventory, equal to an 8.4-month supply at September’s sales pace. Of these, 111,000 were completed and ready for occupancy.
Did new-home prices rise or fall?
The median price was $400,400 in September. It rose 3.9% from August but was 3.9% lower than a year earlier.
What did the homebuilders’ association say was limiting sales?
NAHB officials pointed to elevated mortgage rates and high home prices as affordability barriers. The release does not quantify how much each factor contributed to September’s decline.
Source: hardwareretailing.com
