ARLINGTON, Va.—New home sales decreased 5.5% in September due in large part to deteriorating home affordability, according to NAFCU Research Assistant Yun Cohen.
"Hurricane Florence was part to blame, but the slowdown in sales was mostly due to deteriorating affordability. Mortgage rates recently climbed to a seven-year high, and are expected to continue rising through into 2019," Cohen added.
September's new home sales were 13.2% higher lower than a year ago. Sales during the month decreased in three of the four regions: Sales in the Northeast dropped 40.6%, followed by the West (-12%) and the South (-1.5%).
Based on current month sales, there were 7.1 months of supply in September, up from 6.5 months in August. The number of unsold homes left on the market rose from 318,000 to 327,000 units. This marks the highest inventory level since 2009 and represents a 16.8% increase from a year ago, Cohen said.
The median new home price, non-seasonally adjusted, increased from $319,200 in August to $320,000 in September. September’s prices were 3.5% lower than a year ago, Cohen said.