Steel Markets
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/9e4f65123c7227ecb37bdcac9e233229.jpg)
Existing Home Sales in May Best Since 2007
Written by Sandy Williams
June 23, 2016
Existing home sales in May grew to their highest pace in over nine years, said the National Association of Realtors in their most recent report. Sales were up 1.8 percent to a seasonally adjusted annual rate of 5.53 million, compared to the downwardly revised April rate of 5.43 million.
Existing sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose for the third consecutive month in May. “This spring’s sustained period of ultra-low mortgage rates has certainly been a worthy incentive to buy a home, but the primary driver in the increase in sales is more homeowners realizing the equity they’ve accumulated in recent years and finally deciding to trade-up or downsize,” said Lawrence Yun, NAR chief economist. “With first-time buyers still struggling to enter the market, repeat buyers using the proceeds from the sale of their previous home as their down payment are making up the bulk of home purchases right now.”
Added Yun, “Barring further deceleration in job growth that could ultimately temper demand from these repeat buyers, sales have the potential to mostly maintain their current pace through the summer.”
The median sales price for all types of houses in May was $239,700, up 4.7 percent from May 2015 and the 51st consecutive month of year over year gains.
Single family home sales grew 1.9 percent from April to a rate of 4.90 million. The median price of $241,000 was an increase of 4.6 percent from May 2015.
Condos and Co-op sales grew 1.6 percent from April and condos sold for a median price of $229,600, a 6.0 percent increase year over year.
Tight inventory is still an issue for the housing industry. Total housing inventory at the end of May was 2.15 million existing homes for sale, up 1.4 percent from April but still 5.7 percent lower than the same period a year ago. At the current sales pace, unsold inventory is at a 4.7 month supply, the same as April.
“Existing inventory remains subdued throughout much of the country and continues to lag even last year’s deficient amount,” adds Yun. “While new home construction has thankfully crept higher so far this year, there’s still a glaring need for even more, to help alleviate the supply pressures that are severely limiting choices and pushing prices out of reach for plenty of prospective first-time buyers.”
Regionally, sales were strong everywhere but in the Midwest where sales dropped 6.5 percent from April to an annual rate of 1.30 million. Midwest prices were up 4.8 percent from a year ago.
Sales in the South grew 4.6 percent from April, the West 5.4 percent and the Northeast 11.6 percent. Median prices in the South were up 5.9 percent to $211,500 and in the West up 7.7 percent to $346,900. Prices in the Northeast were little changed, dropping 0.1 percent to $268,600.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/GrafTech.jpg)
GrafTech’s Q2 loss widens in ‘challenging’ business environment
GrafTech cited a “challenging” part of the business cycle as its net loss widened in the second quarter.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Poor steel margins continue to push down raw material prices
Both iron ore and coking coal prices fell this week because of resistance from buyers. Iron ore prices have continued to fall throughout the past week, following sharp declines in steel prices in China, given no new policy announcement from the ‘Third Plenum’ meeting.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/canacero-logo.png)
Op-Ed: The myth of the Mexican steel surge
We have heard ominous warnings about a flood of Mexican steel threatening the US market. It's the kind of rhetoric that gets thrown around often with little regard for the facts. The reality is that the Mexican steel surge is simply not happening, and the US steel industry has consistently maintained a significant trade surplus in finished products with Mexico. In 2023 alone, this surplus exceeded $3 billion.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/graph_up_arrow.png)
Influx of coated products fuels recent import surge
Steel imports fell back in May from April’s recent high but remained elevated compared to the levels seen over the past year. A deeper dive into the data confirms what SMU has been hearing from sources: Coated sheet is driving the recent rise in overall import levels.