New Home Inventory Sits at 8.4 Months: Why That Favors Buyers

On October 27, the U.S. Census Bureau reported that new home inventory stood at 476,000 houses for sale at the end of September 2026, an 8.4 months' supply at the current sales rate. That much supply gives you room to negotiate, most of all on homes that are already finished. If you want to see what is finished near you, you can begin the conversation with our team and compare homes side by side.

What the September new home sales report says

The Census Bureau and HUD publish new home sales each month. The September 2026 figures came out October 27.

• Sales: a seasonally adjusted annual rate of 676,000, down 0.6% from August and down 5.3% from September 2025.
• Median sales price: $400,400.
• Average sales price: $472,800.
• Houses for sale: 476,000, seasonally adjusted.
• Months' supply: 8.4.
• South region sales: a seasonally adjusted annual rate of 413,000, about 61% of the national total.

The South includes both Carolinas, so most new home sales in the country happen in the region where you are shopping.

What "not statistically significant" means here

The Census Bureau gives each change a 90 percent confidence range, and if that range includes zero, it cannot say whether sales actually rose or fell. The 0.6% monthly drop carries a range of plus or minus 13.8%. The 5.3% yearly drop carries a range of plus or minus 12.5%. Both include zero, so the Census Bureau cannot say whether sales rose or fell.

Two changes did clear the bar. The number of houses for sale fell 1.0% from August, with a range of plus or minus 0.9%. The average sales price fell 6.7% from a year earlier, with a range of plus or minus 6.6%.

How months' supply works

The Census Bureau defines months' supply as the ratio of houses for sale to houses sold. In plain terms, it is how long the current new home inventory would last if builders stopped adding homes and sales kept their September pace. A higher number means more homes compete for each buyer, which gives you leverage.

1. Take the annual sales rate: 676,000.
2. Divide by 12 to get a monthly pace: about 56,300 homes.
3. Divide homes for sale by that pace: 476,000 divided by 56,300 is about 8.4 months.

New home inventory by stage of construction

Not every home in the count is ready to move into. Of the 476,000 seasonally adjusted homes for sale in September, fewer than one in four was finished.

• Completed: 111,000 homes.
• Under construction: 250,000 homes.
• Not started: 115,000 homes.

The completed homes matter most for negotiation. A completed home is built and ready to close, and its builder carries its costs until it sells. The Census Bureau's unadjusted table puts the median time for sale since completion at 3.0 months.

"Months' supply is a national number. Ask the builder how long the specific home you like has been finished. That one fact tells you more about your room to negotiate than any headline," said Bryan De Bruin, CEO of Red Cedar Homes.

What you can negotiate on a move-in ready home

With a completed home, the floor plan and finishes are set. Your leverage moves to three places.

• Price: a lower contract price lowers your loan amount and your monthly payment for the life of the loan.
• Closing costs: a credit at closing lowers the cash you bring. Loan programs limit how much a builder can pay. Fannie Mae, for example, caps these concessions at 3% of the lower of the price or appraised value when your loan-to-value is above 90%, 6% from 75.01% to 90%, and 9% at 75% or less.
• Options and add-ons: ask for items that can still go in after completion, such as window coverings, a refrigerator or a fence, to be included in the price.

Get every concession in the purchase contract. A verbal promise does not close.

"Use the inventory, but compare total cost, not the size of the discount. Put the price, the closing credit and every included item on one page, then compare that page across homes," De Bruin said.

Inspect a finished home like any other

A new home still deserves an independent inspection. A finished home lets an inspector see the actual work in place.

1. Hire your own licensed home inspector before your inspection period ends.
2. Walk the home with the builder's representative and list every item in writing.
3. Ask what the warranty covers and how to file a claim.
4. Confirm in writing when listed items will be fixed, before closing.

"A finished home is a good thing for a buyer. You can inspect what you are paying for, not a drawing. Bring your own inspector and read the warranty before you sign," De Bruin said.

To see what a new construction price should cover, read what is included in a new construction price. If you are weighing a resale home too, compare new construction and existing homes.

Frequently asked questions

Does 8.4 months of new home inventory mean prices will fall?

Not on its own. Months' supply measures how long homes would last at the current sales pace. It says nothing about future prices. It does tell you that builders are competing for buyers right now.

Is a completed home easier to negotiate than one under construction?

Often. A completed home is built and ready to close, and its builder carries its costs until it sells. A home not yet started has more room for design choices but less pressure on the builder to move it.

How much can a builder pay toward my closing costs?

It depends on your loan program and down payment. Under Fannie Mae rules for a principal residence, the cap ranges from 3% to 9% of the lower of the price or appraised value. Ask your lender for the limit on your loan.

See move-in ready homes in Greenville and Charlotte

Red Cedar Homes builds in Charlotte, Greenville and Spartanburg. You get a stated price, with options priced before contract. Browse available homes, or start with new homes in Greenville and new homes in Charlotte. To see how the process works from contract to closing, read how it works. When you are ready, begin the conversation or call 980-890-9381.

Figures as of November 2026. This is general information, not legal or tax advice. Talk to your attorney or CPA about your situation.

Sources

• U.S. Census Bureau and U.S. Department of Housing and Urban Development, "Monthly New Residential Sales, September 2026," released October 27, 2026: https://www.census.gov/construction/nrs/pdf/newressales.pdf
• Fannie Mae Selling Guide, B3-4.1-02, Interested Party Contributions (IPCs): https://selling-guide.fanniemae.com/sel/b3-4.1-02/interested-party-contributions-ipcs