New-Home Sales Dip Less Than Expected as Builder Incentives Bolster Sales

Home sales dipped a bit less than expected last month, apparently as homebuilders used incentives to entice hesitant buyers.Contract signings for new-construction properties reached a seasonally adjusted annual rate of 676,000 in September. That's 0.6% below August's figure, the U.S. Census Bureau and Department of Housing and Urban Development reported Thursday. The number is also 5.3% down from a year earlier.The median sale price was $400,000, 3.9% above August 2026 where it hit $385,000, and 3.9% below September of last year, when it hit $416,800.Last week, three major builders, PulteGroup, M/I Homes, and NVR, Inc., all reported major net income declines. That's caused many of them to be more selective about the markets where they're active, but they have also reported using incentives to entice buyers.“The rapid increase in interest rates has stretched affordability even further, made selling an existing home even harder, and has pushed even more consumers to the sidelines,” PulteGroup CEO Ryan Marshall said as he reported the company's year-over-year net income dropped by 17% in the third quarter.Still, the housing market is showing stress amid rising interest rates, even as ...