Declining interest rates spurred the increase. 

The median price of a new home sold during the month fell to $418,800 from $433,100 in August, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported. 

Specifically, single-family homes were built at a seasonally adjusted annual rate of 963,000, up 3.2% from 933,000 in August and up 8.6% from 887,000 a year earlier, according to government figures. 

Single-family home permits and completions, meanwhile, also rose, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. 

Demand for newly built homes has remained strong as high interest rates keep many would-be sellers of existing homes off the market. 

The larger-than-expected increase comes as homebuilder sentiment rose for the sixth month in a row. 

Construction is underway at Jubilee, a new master-planned community from Johnson Development.

Howard Hughes Corporation announced that early childhood education provider Kids R Kids will open a preschool at its Bridgeland master-planned community.

A shortage of existing inventory continues to drive buyers to new construction. 

Single-family permits also posted a gain, indicating even more new homes are headed to today’s supply-constrained housing market. 

Homebuilder optimism was buoyed by continued shortages of new housing inventory, the National Association of Home Builders reported. 

According to Berkadia’s Houston Construction Pipeline report, the number of planned units citywide is down by almost 22,000 from the fourth quarter of 2022.

Coventry Homes extended its “Ultimate Savings Event” through May, according to a news release. The promotion was originally set to end in April.

Ashton Woods Homes will hold a grand opening event for their homes in StoneCreek Estates on May 11.

Prominent Houston builder Newmark Homes has gained homesites in Elyson, a master-planned community in Katy.

Meritage Homes has purchased a parcel of land in the small Texas community of Crosby with plans to build Sundance Cove, a 1,000-home development.