The median sales price of a newly built single family home hovered at $470,000, up from the median sales price of $436,000 in August, according to new Census data released Wednesday.

Inman Connect New York delivers the perfect blend of outside-the-box thinkers, cutting-edge leaders, and hard-working, successful agents. Join us Jan. 24-26 for crucial content, education, and networking opportunities to help you thrive in today’s changing market. Register here.

Sales of newly built homes continued a free-fall in September, according to data released Wednesday by the U.S. Census Bureau.

New home sales dropped 10.9 percent from August 2022 levels to a seasonally adjusted annual rate of 603,000, 17.6 below the levels recorded in September 2021, according to the new data.

The median sales price of a newly built single family home hovered at $470,000, up from the median sales price of $436,000 in August, while the average sale price clocked in at $517,700, down from the August average of $521,000.

The seasonally adjusted estimate of new homes for sale at the end of September stood at 462,000, representing a supply of 9.2 months at the current sales rate, flat from the levels seen in August but a significant expansion of the inventory levels seen just months ago as builders have trouble filling homes.

Lisa Sturtevant | Image: Bright MLS

“Even though many builders are holding up on starting new projects, the inventory of new homes has expanded quickly over the past few months as sales have diminished,” Bright MLS Chief Economist Lisa Sturtevant said in a statement. “Buyers who remain in the market will have more leverage on price and will be offered incentives and upgrades by builders for quick move-ins, which were virtually unheard of during the pandemic.”

In August, sales of new homes shot up dramatically, clocking in at a seasonally adjusted annual rate of 685,000 — 28.8 percent higher than the July figure of 532,000, but 0.1 percent down from August 2021, with September’s downward trend representing a reversal. Economists theorized that August’s surge in sales were partly a product of buyers rushing to lock in a rate when mortgage rates started to move upwards again, with rates now topping 7 percent, and that the jump seen in August wouldn’t last.

Danielle Hale | Photo credit: realtor.com

“The reprieve from mortgage rates was relatively short lived this summer and as mortgage rates near 7 percent few buyers can afford today’s price levels,” Realtor.com Chief Economist Danielle Hale said in a statement. “The current market requires that buyers spend more of their monthly budget housing, which is a non-starter for some families who are already stretching their budget to the breaking point.”

The regional breakdown showed stronger sales in the more affordable Northeast and Midwest, where sales increased 56  and 4.3 percent respectively when compared to the South where sales decreased by 20.2 percent, and the West where they fell 0.7 percent monthly, mirroring the regional sales pattern of existing home sales.

Email Ben Verde

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
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
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
×