Steel Markets
New Home Sales in May Slip After April's Surge
Written by Sandy Williams
June 23, 2016
Sales of new single family homes were at a seasonally adjusted annual rate of 551,000, according to the latest data from the Department of Commerce. May’s sales were 6.0 percent below the revised April rate of 586,000 from the initial estimate of 619,000. Year over year sales were up 8.7 percent.
A poll by Reuters forecast the annual rate would slide to 560,000. New home sales are known to be volatile and April’s 12.3 percent surge in sales was considered unsustainable. May’s level appears to be a more accurate assessment of the current new housing market.
The median sales price for a new home in May was $290,400 with the average price at $358,900. Approximately 244,000 new homes were for sale at the end of the month representing a 5.3 month supply at the current sales rate. Inventory has been tight and the rise from 4.9 months in April gives buyers a bit more selection.
Employment gains and low mortgage rates continue to support a growing housing market.
“Although new home sales are down from a robust reading in April, they remain solid and builder confidence in the market is growing — two indicators that the housing sector should strengthen throughout the year,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill.
Regionally, new home sales rose by 12.9 percent in the Midwest. Sales fell by 0.9 percent in the South, 15.6 percent in the West and 33.3 percent in the Northeast.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Drilling activity slows in US but picks up steam in Canada
Oil and gas drilling in the US slowed for a third consecutive week, while activity in Canada hovered just shy of the 19-week high reached two weeks prior.
SMU Survey: Buyers remain leery of tariffs, but more see reshoring happening
This week’s SMU survey reveals that a growing number of steel market participants are weary of tariffs and are awaiting evidence of progress reshoring. At the start of 2025, now-second-term President, Donald Trump, pronounced that his plan to implement tariffs would result in increased revenue for the US.
Hot-rolled coil market remains slow, market participants say
Hot rolled spot market participants reported another week of moderate demand and ample supply, with no strong signs that conditions will change next week.
Plate prices slip even as mills officially keep tags unchanged
US plate market participants are not fazed by the constricted nature of the current spot market pricing environment. Right now, they said, mill’s choosing to hold prices from one month to the next makes sense because service centers remain amply supplied and demand is stable. Modest upticks or slips in prices are aligned with most of the participants' expectations right now.
Still no cure for the summertime HR market blues
Seasonal steel slowdowns combined with ongoing anxieties about tariffs and mill strategies have dampened sentiment for several hot-rolled steel market participants this week. Buyers are jittery, market stands still The operator of a Midwest-based service center said that steel buyers are scared. “Everyone is afraid to buy steel right now. Unless you’re on a […]