US New Home Sales Slip in September as Prices Send a Mixed Signal
Sales of new single-family houses eased in September 2026, while prices told a mixed story. The seasonally adjusted annual rate of new home sales was 676,000 in September, down 0.6 percent from 680,000 in August and down 5.3 percent from 714,000 in September 2025, according to the US Census Bureau and the US Department of Housing and Urban Development.
Read those changes with care. Both sales changes carry an asterisk in the Census release. That asterisk means the 90 percent confidence interval includes zero, so there is insufficient statistical evidence to conclude the actual change differs from zero. In plain terms, the reported sales figures moved lower, but the changes are not statistically conclusive at the 90 percent level.
The same caution applies to prices. The median sales price of new houses sold in September 2026 was $400,400, up 3.9 percent from $385,400 in August but down 3.9 percent from $416,800 in September 2025. Both of those median price changes are also asterisked, so neither is statistically conclusive at the 90 percent level either. The average sales price was $472,800 in September, up 0.4 percent from August (asterisked) and down 6.7 percent from September 2025 (not asterisked).
Supply held near eight and a half months
The seasonally adjusted estimate of new houses for sale at the end of September 2026 was 476,000, down 1.0 percent from 481,000 in August and down 2.3 percent from 487,000 in September 2025. The month to month change in houses for sale is not asterisked, while the year to year change is.
That inventory represented a supply of 8.4 months at the current sales rate, compared with 8.5 months in August and 8.2 months in September 2025. Both months supply changes are asterisked. Of the September inventory, 111,000 homes were completed and ready to occupy, according to the National Association of Home Builders.
For buyers, the practical meaning is straightforward. There are slightly fewer new homes listed for sale than a month ago, and roughly eight months of supply at the current pace. That is a slower market than the frenzied pace of recent years, but it is not a market stripped bare of choice.
The broader price index rose, but it covers August
A separate measure, the Federal Housing Finance Agency House Price Index, rose 0.3 percent in August 2026 from the previous month and rose 2.4 percent from August 2025 to August 2026. Note the timing: this index covers August, not September, and it tracks a different set of homes than the Census new home sales report. The FHFA index uses seasonally adjusted, purchase-only data from Fannie Mae and Freddie Mac and a weighted repeat-sales methodology.
The FHFA picture also varied by region. For the nine census divisions, seasonally adjusted monthly home price changes in August 2026 ranged from a 0.8 percent decline in the New England division to a 2.1 percent increase in the East South Central division. Twelve-month changes ranged from 0.5 percent in the Mountain division to 4.4 percent in the East North Central division. The previously reported 0.3 percent increase for July 2026 was revised down to 0.2 percent.
So the two price measures do not tell the same story, and neither should be read alone. The median new home price rose from August but fell from a year earlier, while the FHFA index rose on both a monthly and an annual basis. That is a mixed picture, not a single direction.
Builders are cutting prices and leaning on incentives
Builder sentiment fits the softer sales picture. Builder confidence in the market for newly built single-family homes fell three points to 29 in October 2026, the lowest reading since June 2012, according to the NAHB/Wells Fargo Housing Market Index. The components were current sales conditions at 33 (down two points), sales expectations for the next six months at 32 (down five points), and traffic of prospective buyers at 18 (down five points).
Builders responded the way sellers do in a slow market. In October 2026, 43 percent of builders cut prices, the highest share during the 2020-2026 period, and the average price cut remained at 6 percent for the seventh consecutive month. Meanwhile, 65 percent of builders reported using sales incentives in October, the 19th straight month at least 60 percent of builders have done so.
NAHB chairman Bill Owens said builders continue to offer incentives and adjust pricing to attract buyers, but elevated mortgage rates and high home prices are limiting the number of households that can afford to purchase a home. That tension, incentives on one side and affordability limits on the other, is the story behind the September numbers.
On a year-to-date basis, NAHB reported new home sales down 0.5 percent in the Midwest, down 1.3 percent in the South, down 9.2 percent in the West, and up 2.3 percent in the Northeast. Those are year-to-date figures, not September-only results.
For more context, see our coverage of builder sentiment at its lowest since 2012, September new home purchase applications, and the latest Freddie Mac rate reading.
Frequently Asked Questions
How many new homes sold in September 2026?
Sales of new single-family houses were at a seasonally adjusted annual rate of 676,000 in September 2026, according to Census and HUD. That is a rate, not a count of homes sold in the month itself: it shows what the yearly total would be if September's pace held for twelve months.
Did new home sales really fall in September?
The reported rate was 0.6 percent below August and 5.3 percent below September 2025, but both changes carry an asterisk in the Census release. That means the 90 percent confidence interval includes zero, so there is insufficient statistical evidence to conclude the actual change differs from zero. The honest summary is that sales were reported lower, but the decline is not statistically conclusive.
What was the median new home price in September 2026?
The median sales price of new houses sold was $400,400, up 3.9 percent from $385,400 in August and down 3.9 percent from $416,800 in September 2025. Both changes are asterisked, so neither is statistically conclusive at the 90 percent level. The average sales price was $472,800.
What counts as a new home sale?
A new home sale occurs when a sales contract is signed or a deposit is accepted, according to NAHB. The home can be in any stage of construction: not yet started, under construction, or completed.
How much new home supply is available?
There were 476,000 new houses for sale at the end of September 2026, a supply of 8.4 months at the current sales rate. That compares with 8.5 months in August and 8.2 months in September 2025. Completed, ready-to-occupy homes made up 111,000 of the September inventory.
Are builders cutting prices?
Yes. In October 2026, 43 percent of builders cut prices, the highest share during the 2020-2026 period, and the average price cut held at 6 percent for the seventh consecutive month. In addition, 65 percent of builders reported using sales incentives, the 19th straight month at least 60 percent have done so.
When is the next FHFA House Price Index report?
The next FHFA report will be released on 24 November 2026 and will include monthly data through September 2026 and quarterly data through the third quarter of 2026.
Sources: US Census Bureau and US Department of Housing and Urban Development, New Residential Sales, September 2026, released 27 October 2026; Federal Housing Finance Agency, FHFA House Price Index, August 2026, released 27 October 2026; National Association of Home Builders, NAHB/Wells Fargo Housing Market Index, October 2026, published 19 October 2026, and NAHB, "Affordability Challenges Push New Home Sales Lower", published 27 October 2026. All figures checked on 28 October 2026.
