Sales of newly built single-family homes fell 0.6% in September to an annual rate of 676,000, down from 680,000 in August, according to the U.S. Census Bureau and Department of Housing and Urban Development.
Despite the decline, sales reached their third-highest level of 2026, exceeding economists’ expectations of 650,000. Sales were down 5.3% from September 2025.
Regional breakdown: Sales increased 28.0% in the Northeast and 21.4% in the West. However, the Midwest declined 7.3%, while the South, which accounts for approximately 61% of new home sales, fell 6.6%.
Home prices: The median sales price rose 3.9% to $400,400, although prices remained 3.9% below September 2025.
The bottom line: New home sales are holding up better than expected despite elevated mortgage rates. Inventory declined to 476,000 homes, representing 8.4 months of supply, down from 8.5 months in August.