New-home sales for single‐family properties in September 2021 were at a seasonally adjusted annual rate of 800,000, according to the latest Census data. This is 14% above the revised August rate of 702,000, and the third month in a row of increases. However, it is still 17.6% below last year’s numbers.
Market breakdown:
New-Home Sales: 800,000
For-Sale Inventory: 379,000
Months’ Supply: 5.7 months
Median Price: $407,800
What the industry is saying:
“New-home sales continued their upward momentum in September, as signs that historically-low rates were likely to move above 3.0% flashed brighter. For many buyers, the carrying costs of a predictable monthly mortgage offered a strong incentive to make an offer on a new home.
“September new-home sales saw a slight increase from a revised August figure, driven by gains in the West. However, sales of new homes were lower than the same month in 2020. Noticeably, the cost of lumber bounced off the August bottom of around $400, moving into the mid-$600s per thousand board feet. The increase ensured that homebuilders kept higher prices, pushing the median new home sale price up double-digits from a year ago. The supply of new homes has been improving from a low of 3.7 months of inventory in March. Sales of entry-level homes—priced below $300,000—accounted for a relatively small share of total sales, reflecting the tight market for affordable new housing.” — George Ratiu, Manager of Economic Research, realtor.com®
“Despite the decline in starts this month, sales remained strong indicating that buyers are still seeking new product to meet their ever-evolving needs as the school year begins and households adapt to their ‘new normal’ schedules. Buyers increasingly are planning for longer-term remote work or hybrid work schedules, and/or relocations that arose because of the pandemic, and builders are delivering flexible floor plans and features that accommodate the changing needs of the home as both a place for living but also for working in many cases.”
“RCLCO expects home sales to remain strong as the year comes to a close, because millennials are in peak family-formation years and demand remains for larger living spaces and homes with outdoor access.” — Kelly Mangold, RCLCO Real Estate Consulting
