Over 30% of homes for sale in the United States were new construction during the third quarter — that’s the highest share of any third quarter on record, up from 28.9% in 2022 and 25% in 2021.

The reason for this phenomenon is twofold, according to Redfin: First, construction has ramped up around the country. Second, existing homeowners are staying put in their homes to hold on to their super low mortgage rates.

Furthermore, Redfin says buyers who haven’t been sidelined by high mortgage rates are more likely to purchase new construction homes thanks to builder concessions like mortgage rate buydowns.

“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 agent based 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.”

New single-family home sales increased by 12.3% during September, the fastest pace since early 2022.