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Number of New-Home Sales Dips Slightly in the U.S.

After four months of increases, the number of deals has declined 3.5%

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A total of 959,000 newly built single-family homes sold in September.

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A total of 959,000 newly built single-family homes sold in September.
Getty Images

After recording four consecutive months of increases, the number of newly built single-family homes sold in the U.S. dipped in September, according to a report released Monday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

There were 959,000 sales of new single-family houses in September, 3.5% below August’s number of 994,000 and the lowest total since June, according to the data, which is seasonally adjusted to account for predictable and regular annual fluctuations in the housing market.

Despite the slight dip, September’s newly constructed family home transactions remained a notable 32.1% above the level recorded in 2019, when there were approximately 726,000 new single-family homes changing hands. 

The boom compared to last year reflects the surge of demand for homes that has emerged following coronavirus lockdowns. Buyers, having spent increased time indoors because of the pandemic, have reassessed their housing needs. More square footage, home offices and outdoor space are now top of buyers’ shopping lists.

As a result of the home-buying frenzy, the level of newly constructed supply has also dropped.

The seasonally adjusted estimate of new houses for sale at the end of September was 284,000, a number that represents 3.6 months of supply at the current sales rate, the report said.

At the same time last year, that number stood at 321,000, equivalent to 5.3 months of supply.

Falling inventory has been a hindrance to all parts of the U.S. housing market of late, not just the new construction segment.

The number of active listings on the market hit an all-time low in September, with 28% fewer homes for sale than the same time last year, according to a separate report earlier in October from online real estate portal Redfin.

The dearth of supply, paired with the feverish demand for homes pushed the overall median sold price to $319,769 in September, a 14% increase from a year ago and the highest price on record, the Redfin report said.

However “the question on everyone’s mind is ‘how fast can prices keep rising?’” said Daryl Fairweather, Redfin’s chief economist, who noted that mortgage applications have begun to slow, and asking prices are no longer climbing as quickly from month to month.