Steel Markets

Existing Home Sales Up for Third Month
Written by Sandy Williams
August 20, 2015
Existing home sales increased for the third consecutive month in July. The seasonally adjusted annual rate for July was at 5.59 million, up 2 percent from a downwardly revised 5.48 million in June. Sales were at their highest pace since February 2007, said the National Association of Realtors, but first time buyer sales dropped to their lowest share (28 percent) since January.
“The fact that first-time buyers represented a lower share of the market compared to a year ago even though sales are considerably higher is indicative of the challenges many young adults continue to face,” adds Yun. “Rising rents and flat wage growth make it difficult for many to save for a downpayment, and the dearth of supply in affordable price ranges is limiting their options.”
Inventory was down 0.3 percent to 2.24 million homes for sale, and down 4.7 percent from July 2014. A 4.8 month supply of inventory is available at the current sales pace.
Median sales price for all housing types rose for the 41st consecutive month to $234,000, up 5.6 percent year over year.
“The creation of jobs added at a steady clip and the prospect of higher mortgage rates and home prices down the road is encouraging more households to buy now,” said Lawrence Yun, NAR chief economist. “As a result, current homeowners are using their increasing housing equity towards the downpayment on their next purchase.”
Single family home sales were up 2.7 percent to a SAAR of 4.96 million in July and 11 percent above year ago levels. A median price for a single family home was $235,000, an increase of 5.8 percent from 2014.
Condo and co-op sales fell 3.1 percent from June to SAAR 630,000 units but still exceed July 2014 levels by 5 percent.
Home sales increased the most in the South, rising 4.1 percent to an annual rate of 2.29 million. Existing home sales in the West were also up by 3.2 percent to an annual rate 1.28 million. Sales were unchanged from June in the Midwest at 1.32 million and decreased by 2.8 percent to an annual rate of 700,000 in the Northeast.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Trading firms Mercuria and Tata International partner in joint venture
Geneva-based global commodities trader Mercuria is set to acquire a majority stake in Tata International, according to a report in India's Economic Times.
Glenfarne Alaska LNG and POSCO ink preliminary partnership
Glenfarne Alaska LNG and POSCO signed a preliminary strategic agreement during the GasTech Conference in Milan on Thursday.

Steel export volumes remain weak through July
Following a 3% decline in June, the amount of steel shipped outside of the US edged up 1% in July to 623,000 short tons. July was the sixth-lowest monthly export rate since the COVID-19 pandemic, and...

Hot-rolled market participants say ‘doldrums’ to roll on through year-end
Participants in the hot-rolled steel sheet market expect the market to remain subdued through the end of the year.

Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.