Sales of new single-family houses reached 738,000 on a seasonally adjusted annual basis, the best performance in more than a year and half, according to a release from the U.S. Census Bureau and the Department of Housing and Urban Development.

Economists polled by Reuters had expected that new home sales would only climb to 720,000 for the month.

The 738,000 figure is 4.1% above the revised August rate of 709,000 and is 6.3% above the September 2023 estimate of 694,000. The seasonally adjusted estimate of new houses for sale at the end of September was 470,000. This represents a supply of 7.6 months at the current sales rate.

The median sales price of new houses sold in September 2024 was $426,300. The average sales price was $501,000.

The surprising number comes just a day after the National Association of Realtors reported that existing homes fell by 1%.

“Housing inventory is on the uptick and, with the Fed projected to lower rates up to two more times this year alone, we expect 2025 will turn very positive for home sales,” said Gabe Abshire, CEO and founder of Move Concierge, in a statement.