New home sales in the third quarter of 2024 reached their highest levels since 2021, even though September experienced the lowest monthly sales of the year. However, September also marked a record-breaking moment with the highest monthly median price ever reported.

According to Las Vegas-based Home Builders Research (HBR), there were 808 net sales in September, slightly above the same month in 2023 but lower than historical averages. The third quarter saw 2,707 sales, surpassing the 2,654 recorded in Q3 2023 and the 1,502 in Q3 2022, when high mortgage rates slowed the market.

Andrew Smith, HBR’s president, noted that rising interest rates could lead to a fourth-quarter slowdown, as mortgage rates hovered around 6% by the end of September. Builders responded to market conditions by pulling fewer permits in September, down 17% from the previous year. However, year-to-date permits totaled 10,043, an 11% increase from 2023.

Throughout Q3, builders introduced 22 new communities, adding nearly 1,900 lots. Lennar led the market with 546 net sales for the quarter, while KB Home’s Inspirada townhomes ranked as the top-selling individual community.

Closings, which trail sales activity, saw 1,028 transactions in September, a slight 2% drop from last year. For the year, total closings rose 10% compared to 2023. The third quarter alone recorded 3,211 closings, a 7% increase year-over-year.

The median closing price for single-family homes reached $550,000, an 8% rise from September 2023, setting a new record. Attached homes, such as townhomes and condos, had a median price of $393,990, up 4%. Attached homes made up 25% of September sales and 26% year-to-date.

New home sales accounted for 30.3% of total September closings, with new home closings averaging 8% higher in 2024 compared to the previous year.