Sales of new residential homes were up 32 percent year over year, according to data released Monday by the U.S. Census Bureau.

New residential home sales blew away last year’s figures, soaring 32 percent year-over-year, according to data released Monday by the U.S. Census Bureau.

Sales of new single-family homes hit an adjusted annual rate of 959,000 during the month of September, according to the data, a 3.5 percent increase from the month prior.

“Home buying demand remains robust due to low rates and continued demographic demand,” Odeta Kushi, the deputy first economist at First American wrote on Twitter. “Demand is spilling over from the existing home market where homes are even harder to find.”

The median sales price in September was $326,800, while the average sales price was reported at $405,400, according to the data.

Supply continues to be low, with only 3.6-months supply at the current sales pace at the end of the month.

Despite the eye-popping increase, new residential home sales actually came in below expectations, according to John Pataky, executive vice president at TIAA Bank. The new home sales sector has a number of challenges, including sky-high lumber costs and the ongoing pandemic.

“The housing market, which has been surging for the past several months in defiance of the broader economy, has started to show some cracks, and this month’s new home sales figures indicate that the housing market might be finally losing some steam,” Pataky said. “As the economy continues to gingerly get back to its feet, buyers have continued to enter the market and builders have done their best to keep up with surging demand.

“However, the new home market is not immune from the same problems facing the broader market, namely tightening inventories and climbing prices.”


Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
Time is running out to secure your Connect Now tickets at the lowest price. Don't miss out on a chance to grow yourself and your business.Learn More×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription