ARLINGTON, Va.—Although new-home sales fell slightly in September to 701,000 annualized units, the month's sales were 15.5% higher than last year.
NAFCU Chief Economist and Vice President of Research Curt Long said "a key to this year's housing resurgence has been increased construction activity."
"New unit permits were up 8% from a year prior in September, although gains in units that have actually broken ground have been more modest," Long said. "This month homebuilder sentiment hit its highest level since February 2018, with strong readings for sales expectations and foot traffic."
Long added that lack of supply continues to constrain new-home sales, as with existing home sales, but "so long as rates remain low, NAFCU expects further improvement in the housing market."
Throughout September, sales rose only in the Midwest (+6.3%), while sales declined in the West (-3.8%), Northeast (-2.8%), and South (-0.2%).
Three of the four regions saw significant year-over-year growth in new-home sales: the Northeast (+29.6%), South (+24%), and West (+11.5%). The Midwest saw sales fall 17.3% from last September.
The median new-home price fell from $325,200 in August to $299,400 in September and is down 8.8% from last year, Long said.