Steel Products
Existing Home Sales Slip Slightly in December but Rise for the Year
Written by Sandy Williams
January 23, 2013
Existing home sales slowed slightly in December but limited inventory is fueling price increases, according to the National Association of Realtors. December sales declined 1.0 percent to a seasonally adjusted annual rate of 4.94 million in December from a downwardly revised 4.99 million in November, but are 12.8 percent above the 4.38 million-unit level in December 2011.
The preliminary annual total for existing home sales in 2012 was 4.65 million, up 9.2 percent from 4.26 million in 2011 and at the highest level in five years.
The preliminary annual total for existing home sales in 2012 was 4.65 million, up 9.2 percent from 4.26 million in 2011 and at the highest level in five years.
Housing inventory fell 8.6 percent to 1.82 million existing homes for sale—a housing supply of 4.4 months at the current sales pace and the lowest supply since May of 2005.
The median price for existing homes in December was 11.5 percent above the December 2011 price. Foreclosures and short sales accounted for about 24 percent of December sales, down from 32 percent in December2011.
Existing single-family home sales were down 1.4 percent in December to a seasonally adjusted annual rate of 4.35 million but were 11.5 percent above December 2011 levels. Existing condo sales rose 1.7 percent in December and were up 16 percent from a year ago.
Regionally, Northeast and West annual levels of existing home sales increased in December by 3.2 percent and 5.1 percent, and year over year by 10.3 percent and 8.8 percent, respectively. Annual Midwest sales fell 5.9 percent in December but were 15.5 percent higher year-over-year. Sales in the South declined 3 percent in December but were up 14.7 percent from December 2011.
Lawrence Yun, NAR chief economist, said pent-up demand is sustaining the market. “Record low mortgage interest rates clearly are helping many home buyers, but tight inventory and restrictive mortgage underwriting standards are limiting sales,” he said. “The number of potential buyers who stayed on the sidelines accumulated during the recession, but they started entering the market early last year as their financial ability and confidence steadily grew, along with home prices. Likely job creation and household formation will continue to fuel that growth. Both sales and prices will again be higher in 2013.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
Active rig count update through mid-May
Drilling activity ticked up in the US but declined in Canada during the week ended May 17, according to the latest release from Baker Hughes.
Mexico’s TYASA breaks ground on SBQ rolling mill
Mexican steelmaker Talleres y Aceros (TYASA) broke ground this month on the construction of a new special bar quality (SBQ) rolling mill in the state of Veracruz.
Biden hikes tariffs on Chinese goods, including steel and aluminum
The Biden administration announced a series of actions on Tuesday targeting China’s "unfair" trade policies. These actions will, among other things, make imports of steel and aluminum from the Asian nation even more prohibitive.
Nucor holds weekly HRC price steady after last week’s cut
Nucor chose to hold its consumer spot price (CSP) for hot-rolled (HR) coil steady this week after stunning the market last week with a significant price decline. The steelmaker said in a letter to customers on Monday morning that its $760-per-short-ton (st) CSP base price for HR coil is effective immediately. The price is unchanged from the CSP announced on May 6 but down $65/st from $825/st April 29.
US CR tags ease, premium over imports still high
Offshore cold-rolled (CR) coil prices remain much less expensive than domestic product, even as domestic prices have slipped to a six-month low, according to SMU’s latest check of the market.