US new home sales fell 0.6 percent in September

New home sales in the United States fell by 0.6 percent month over month in September to a seasonally adjusted annual rate of 676 thousand, according to Zillow Research, Realtor.com Research, and BigGo Finance. Zillow Research and Realtor.com Research both report that sales activity was 5.3 percent lower than in the same period last year. Zillow Research noted that sales held essentially firm compared to the 680 thousand rate recorded in August. [1][5][8]

Prices for new homes also decreased during the month. Zillow Research and BigGo Finance both report that the median price of new homes sold dropped 3.9 percent from a year earlier to $400,400. Zillow Research added that smaller and more affordable properties represented a higher proportion of overall sales, with units in this category making up 70 percent of total sales activity. [1][8]

Total new home inventory on the market declined by 2.3 percent year over year to 476 thousand units in September, Zillow Research reported. This decline represents the 11th consecutive month of annual inventory reductions as homebuilders slow down new construction projects. Based on the current sales pace, Zillow Research reported that clearing the available supply of homes would take approximately 8.4 months, compared to 8.2 months recorded a year ago. [1]

Sales activity in the new home sector has remained sluggish throughout 2026. Realtor.com Research reported that year to date sales are running 2.9 percent below levels recorded in 2025. Additional reporting by Bloomberg.com and Eye On Housing attributed lower demand to elevated mortgage rates and ongoing affordability challenges for prospective buyers. [5][9][10]