Appointment

New Home Sales Slip to 676,000 as Builders Lean on Buydowns

  • by- Grihik
  • Oct 28, 2026
New home sales fell to 676,000 in September, 5.3% below a year ago, while the median new-home price dropped 3.9% to $400,400.
New Home Sales Slip to 676,000 as Builders Lean on Buydowns

Sales of new single-family homes ran at a seasonally adjusted annual rate of 676,000 in September, the Census Bureau and HUD reported on Tuesday. That is 0.6% below August's revised rate of 680,000 (first reported as 684,000) and 5.3% below September 2025's 714,000. Economists had expected about 660,000.

What are the key numbers?

  • Median new-home price: $400,400, down 3.9% from a year earlier

  • Average new-home price: down 6.7% from a year ago

  • Margin of error: Census says the monthly change is not statistically significant, with a margin of about plus or minus 13.8%

 

Why do builders still sell?

HousingWire's Logan Mohtashami says builder rate buydowns continue to support new-home demand while mortgage rates are above 7%, keeping sales in a long-running range of roughly 640,000 to 700,000.

How does it fit with other reports?

NAHB's builder confidence index fell to 29 in October, the lowest since June 2012, with a record 43% of builders cutting prices. Housing starts were 1.221 million in September, down 5.2%. Pending home sales for existing homes fell to a record low.

What does it mean for buyers?

New homes can be cheaper than resale homes in many markets because builders can discount or buy down rates, while existing-home sellers are locked into low-rate mortgages and list fewer homes. Compare the total cost, including the buydown's expiry, with a resale purchase.

What next?

The October new home sales report is due in late November.