In September, newly built, single-family homes decreased 3.5 percent to 959,000 from a downwardly revised August number, according to the latest Commerce Department monthly report.
Despite the monthly decline, the September rate is still 32.1 percent higher than the September 2019 pace. On a year-to-date basis, new-home sales are up 16.9 percent in 2020.
On a regional basis, new-home sales increased in all four regions, year-to-date: 22.5 percent in the Northeast, 25.9 percent in the Midwest, 14.4 percent in the South and 18 percent in the West.
Here’s the market breakdown:
New-Home Sales: 959,000
For-Sale Inventory: 284,000
Months’ Supply: 3.6 months
Median Price: $326,800
What the Industry Is Saying:
“With sales up 32 percent from a year ago, the demand for new single-family homes remains strong as interest rates are at historic lows. However, the recent run-up in lumber and other material costs is leading to an increase in pricing.” — National Association of Home Builders Chairman Chuck Fowke
“The pace of new home sales growth over the summer was going to slow given that the gap between sales and single-family construction reached an all-time high in August. Indeed, September sales of new homes that had not started construction were up 47 percent compared to a year ago.” — National Association of Home Builders Chief Economist Robert Dietz