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Nearly one-third of single-family homes for sale during the third quarter were new construction, according to data published by Redfin (NASDAQ:RDFN).

The 30.6% share is the highest of any third quarter on record. This is up from 28.9% one year ago and 25% two years earlier.

Redfin attributed this record-breaking share to an upswing in homebuilding activity coupled with the decline in existing homes being put on the market at a time when mortgage rates are approaching the 8% mark. Purchases of new single-family homes jumped 12.3% last month – the fastest pace since early 2022.

“Sellers are facing tough competition from homebuilders, who are sometimes offering buyers up to $30,000 worth of concessions,” said Kim Lotz, a Redfin Premier real estate agent in Phoenix. “With that kind of money, a buyer can cover closing costs, home upgrades, and buy down their mortgage rate. In some cases, people who purchased a house from a builder a year ago are selling and competing against that same builder for buyers.”