Sales of new homes jumped 14% in September to the fastest pace in six months as strong demand helped offset rising prices.
The Commerce Department reported Tuesday that sales of new single-family homes rose to a seasonally adjusted annual rate of 800,000 units last month which was well above what economists had been expecting.
However, the government revised lower its estimates for sales in the previous two months with August now showing a 1.4% decline to a rate of 702,000 units.
The September sales pace was the strongest since sales reached an annual rate of 873,000 in March.
The median price of a new home, the point where half the homes sold for more and half for less, rose to a record $408,800 in September, up 9.5% from a year ago. The average sales prices in September increased to $451,700, up 11.5% from a year ago.
Prices are being pushed higher by strong demand and increases being faced by builders who are grappling with shortages of critical building supplies such as lumber.
“We expect new home sales to move mostly sideways over the rest of 2021 as strong demand and low mortgage rates are tempered by high prices and construction backlogs,” said Nancy Vanden Houten of Oxford Economics.
The report showed that sales rose in all parts of the country in September except for the Midwest where they slipped 1.5%. Sales were up 32.3% in the Northeast, 17.5% in the South and 8.2% in the West.
The report on new home sales followed news last week that sales of existing homes rose to a seasonally adjusted annual rate of 6.29 million units in September, the strongest pace since January.
It's a tough time for the job market. Amid wider economic uncertainty, some analysts have said that businesses are at a “no-hire, no fire” standstill. At the same time, some sizeable layoffs have continued to pile up — raising worker anxieties across sectors. Some companies have pointed to rising operational costs due to U.S.'s new tariffs, while others have redirected money to artificial intelligence investments. Workers in the public sector have also been hit hard. Federal jobs were cut by the thousands earlier this year. And many workers are now going without pay as the U.S. government shutdown has now dragged on for more than a month.
Nvidia smashes earnings with record-breaking revenue and soaring Blackwell demand as shares slip this morning, Barron’s senior writer Adam Levine unpacks it all
Jeff Wagoner, CEO of Outrigger Hospitality Group, discusses the company’s coral preservation initiatives and sustainable practices at their hotels and resorts.
Dena Jalbert, Head of M&A at Align Advisory, discusses the state of mergers and acquisitions in 2025 and beyond, highlighting key trends and opportunities.
Kim Perell, author and entrepreneur, shares actionable tips and tricks to help current and aspiring entrepreneurs kick off 2026 with confidence and momentum.
Computer chipmaker Nvidia is poised to release a quarterly earnings report that is expected to either deepen a recent downturn in the stock market or prompt an ebullient sigh of relief among investors increasingly worried the world’s most valuable company is perched upon an artificial intelligence bubble about to burst.
Emera CEO Scott Balfour discusses soaring energy demand, AI-driven grid challenges, clean-power investments, and how the company is building a resilient future.
JB Mackenzie discusses Robinhood’s new entertainment prediction markets, letting users engage with pop culture, award shows, and more through low-stakes bets.
