• There were 603,000 new home sales nationwide in September (SAAR), down 10.9% from August and down 17.6% from September 2021, according to the U.S. Census Bureau.
• The median sales price of new houses sold in September was $470,600.
• The seasonally-adjusted estimate of new houses for sale at the end of September was 462,000, a supply of 9.2 months at the current sales rate.

Mortgage rates spiked in September, leading to a slowdown in new construction sales compared to August when rates took a slight dip down. High rates – thus high mortgage payments – are impacting potential buyer budgets and leading to a pull back in demand until there are more affordable homes available. More new homes are coming onto the market with the new construction backlog finally clearing out, but even though the number of new homes for sale is higher than it has been in over 14 years, new home sales are still way under last month’s and last year’s levels, and builder sentiment continues to fall. As mortgage rates aren’t expected to come down significantly from current levels anytime soon, affordability will remain a major challenge in this market, for both home buyers and sellers. As the ability to afford a new mortgage diminishes, buyers are forced to step back, and potential sellers are faced with the tradeoff of letting go of their affordable monthly payments and low rates becoming less favorable, meaning overall inventory and sales will suffer. Continuing to add for sale inventory from the new construction industry is going to be vital to helping stabilize prices and affordability in the long run, but current market dynamics indicate that it might be a while before home builders are willing and able to deliver.