September New Home Sales Pause Following Strong Summer Surge

Sales of newly built, single-family homes in September fell 3.5 percent to 959,000 from a downwardly revised August number, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Despite the monthly decline, the September rate is 32.1 percent higher than the September 2019 pace, and on a year-to-date basis, new home sales are up 16.9 percent in 2020.

"With sales up 32 percent from a year ago, the demand for new single-family homes remains strong as interest rates are at historic lows," said NAHB chairman Chuck Fowke, a custom home builder from Tampa, Fla. "However, the recent run-up in lumber and other material costs is leading to an increase in pricing."