Between August and September, the supply of new homes for sale increased by 13.6%, resulting in a 9.2-month supply.

The figures: According to the Commerce Department, new home sales in the United States fell 10.9% in September to a seasonally adjusted annual rate of 603,000, down from a revised 677,000 in the previous month.

As home prices continue to fall, the market is gradually shifting. According to S&P Case-Shiller, home prices fell 1.1% from July to August.

Builders are indicating a bleak outlook, which may limit the supply of new homes in the future as they reduce construction.