Sales of newly built homes continued their rollercoaster ride this month, rising 4.1% above the revised August rate of 709,000, which was down from the month before that and a continuation of vacillating levels since the beginning of the year.
The latest numbers released jointly Thursday by the U.S. Census Bureau and the Department of Housing and Urban Development, show sales of new single-family houses in September 2024 were at a seasonally adjusted annual rate of 738,000, which is also 6.3% above the September 2023 estimate of 694,000–the highest level since May of 2023.
New home sales are also outpacing existing home sales, which fell in September, according to the latest National Association of REALTORS®.
“Mortgage rates have been falling, which have enticed some buyers to purchase a new home, but other buyers are still waiting on the sidelines for rates to come down further,” said Dr. Lisa Sturtevant, chief economist of Bright MLS. “Some would-be buyers may also be sitting out until after the election.”
Sturtevant added, “Expect more home shoppers in the market in the fourth quarter, particularly as interest rates move closer to 6%. But the new home sector will be increasingly in competition with existing homes, as more homeowners are listing their home for sale. Homebuilders may be forced to bring their prices down to attract buyers.”
The median price of a new home sold in September was $426,300, virtually unchanged from a year ago, Sturtevant pointed out from the data, adding that new home prices are running about 5% higher than prices of existing homes in September. By contrast, in 2021, 2022, and parts of 2023, new homes were selling for between 20 and 30% more than existing homes, she noted.
Click here to review the full September report.
