• There were 759,000 new single-family home sales nationwide in September (SAAR), up 12.3% from August and up 33.9% from September 2022, according to the U.S. Census Bureau.
• The median sales price of new houses sold in September was $418,800.
• The seasonally-adjusted estimate of new houses for sale at the end of September was 435,000, a supply of 6.9 months at the current sales rate.

What happened: New home sales skyrocketed in September blowing past expectations. While homebuilder confidence is slipping, homebuyers are still strong on new construction with sales up over a third from last year. 

Why it matters: As mortgage rates remain high, driving up the cost of a mortgage beyond what many households are able to afford, new construction is remaining a fan favorite among buyers. This is likely due in large to the incentives many builders are able to offer. While the cost of a new construction home typically reaches above the cost of an existing home for sale, the ability of builders to offer things like rate buydowns and closing cost credits can really tip the scales of affordability in favor of buyers. As such, with high mortgage rates and low inventory rocking the existing home market, buyers are turning to new construction for opportunities – driving up new home sales.