Steel Markets

New Home Sales at Highest Pace in 8 Years
Written by Sandy Williams
July 25, 2016
Sales of new U.S. single-family homes jumped 3.5 percent to a seasonally adjusted annual rate of 592,000 from a revised May total of 572,000, said the Commerce Department on Tuesday. The increase exceeded analyst expectations for a rate of 560,000. Sales for the first half of 2016 were 10.1 percent higher than the same period last year.
“This positive report is in line with our forecast for a gradual recovery of the housing market,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “For builders to meet the increasing demand for housing, we need to address supply-side headwinds such as shortages of lots and labor.”
“The fact that new home sales reached their highest pace in over eight years shows the housing market is gaining momentum,” said NAHB Chief Economist Robert Dietz. “The market should continue to firm throughout the year, propelled by low mortgage interest rates and solid growth in employment.”
The median sales price in June was $306,700 and the average price was $358,200. Inventory at the end of June was an estimated 244,000 new homes for sale, representing a supply of 4.9 months at the current sales rate.
Regionally, sales were strongest in the West and Midwest with increases of 10.9 percent and 20.4 percent, respectively. Sales fell by 0.3 percent in the South and 5.6 percent in the Northeast.

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 […]