New Home Sales Top Forecasts as Builders Cut Prices

Sales of new single-family homes ran at a seasonally adjusted annual rate of 676,000 in September, well above the 651,000 economists had expected, the Census Bureau said Tuesday.

That is down 0.6 percent from August’s pace, which was revised down to 680,000 from the 684,000 first reported. Sales were 5.3 percent lower than a year earlier.

Builders appear to be moving homes by cutting prices. The average sales price fell to $472,800, down 6.7 percent from a year ago, while the median price was $400,400, up 3.9 percent from August but down 3.9 percent from September 2025.

The supply of new homes for sale fell 1.0 percent to 476,000, or 8.4 months at the current sales pace, compared with 8.5 months in August.

Results varied by region. Sales jumped 28.0 percent in the Northeast and 21.4 percent in the West, but fell 6.6 percent in the South, the largest market, and 7.3 percent in the Midwest.

So far this year, sales are down 2.9 percent from the same period of 2025.

With mortgage rates still above 7 percent, the new-home market is holding up mostly because builders are willing to discount.