Steel Markets
Existing Home Sales Up 2.6 Percent in June
Written by Sandy Williams
July 22, 2014
Existing home sales rose 2.6 percent to a seasonally adjusted rate of 5.04 million in June according to a report by the National Association of Home Realtors. Sales were at the highest rate since October 2013 but 2.3 percent below the rate in June 2013.
“Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country,” said Lawrence Yun, NAR chief economist. In order to have a balanced market, however, Yun says new home construction needs to rise by at least 50 percent to correct supply shortages, especially in the West, that are pushing prices higher.
The flat wage growth is also holding back the pace of sales, said Yun, as potential homebuyers back off on buying despite the availability of low interest rates.
June housing inventory stood at 2.23 million existing homes for sale—a 2.2 percent increase from May and 5.5 month supply at the current sales rate. The June inventory is 6.5 percent higher than levels in June 2013.
The median existing home price was 4.3 percent higher year over year at $223,300. The median number of days on the market was 44, down from 47 in May and 37 days in June 2013.
Single family home sales rose 2.5 percent to a seasonally adjusted rate of 4.43 million while condominium and co-op sales increased 3.4 percent from the previous month to 610,000 units.
Regionally, the Midwest led sales with a 6.2 percent increase, followed by the Northeast up 3.2 percent, the West up 2.7 percent and the South 0.5 percent month-over-month.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Week in Review: Sept. 29 -Oct. 3
Let’s take a quick tour of some key stories from SMU in the week of Sept. 29 - Oct. 3.
Hot-rolled coil sources lament stagnant conditions
Participants in the hot-rolled sheet market expressed frustration with the continuing lack of demand this week.
Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."
ITC’s final ruling: Dumped, subsidized CORE imports are harming domestic market
The US International Trade Commission (ITC) finds that corrosion resistant steel (CORE) imports from 10 countries have caused material damage to domestic product producers, according to the ITC’s statement.
HR buyers report mixed market conditions
Hot-rolled coil market participants said they’re staying on their toes amid a market that continues to be characterized by uncertainty. A veteran Midwest-based service center operator contends that current conditions are unprecedentedly volatile. Being flexible with customers and strategic with mills is the only way to navigate through the uncertainty, he said. “No one wants […]