Sales of new single-family homes notched a seasonally adjusted annual rate of 800,000 in September 2021, while the median sales price hit a new record of $408,800.

Sales of new single-family homes spiked 14 percent between August 2021 and September 2021 to a seasonally adjusted annual rate of 800,000, according to the U.S. Census Bureau and Department of Housing and Urban Development’s report released on Tuesday.

That rate, however, is still 17.6 percent below September 2020’s estimate of 971,000.

George Ratiu, manager of economic research at Realtor.com, noted that the sales surge, which beat forecasts, was likely impacted by mortgage rates that threatened to surpass 3 percent.

“New home sales continued their upward momentum in September, as signs that historically-low rates were likely to move above 3 percent flashed brighter,” Ratiu said in a statement to Inman. “For many buyers, the carrying costs of a predictable monthly mortgage offered a strong incentive to make an offer on a new home.”

New homes sold during September hit a new record median sales price of $408,800, while the average sales price was $451,700. The cost of lumber certainly contributed to the new record, Ratiu added.

“The cost of lumber bounced off the August bottom of around $400, moving into the mid-$600s per thousand board feet,” Ratiu said. “The increase ensured that homebuilders kept higher prices, pushing the median new home price to a new record of $408,800, an 18.7 percent jump from a year ago.”

“Sales of entry-level homes — priced below $300,000 — accounted for only 21 percent of total sales, compared with 38 percent in 2020, reflecting the tight market for affordable new housing,” Ratiu added.

By the end of September, the seasonally adjusted estimate of new houses for sale was 379,000, a 5.7-month supply of homes at the current sales rate.

Email Lillian Dickerson

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
×
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
×