Steel Markets
New Home Sales Surge in July
Written by Sandy Williams
August 23, 2016
New home sales rose 12.4 percent from June to July according to estimates released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Sales in July were at a seasonally adjusted annual rate of 654,000, 31.3 percent above the year ago level and at their highest level in almost nine years.
The median sales price was $294,600 and the average sales price $355,800. At the end of July inventory stood at an estimated 233,000 representing a 4.3 month supply at the current sales rate. Inventory tightened from a 4.9 month supply in June.
Regionally, sales compared to June were 40.0 percent higher in the Northeast and 18.1 percent higher in the South. Midwest sales increased 1.2 percent and in the West were unchanged from levels in June.
“This rise in new home sales is consistent with our builders’ reports that market conditions have been improving,” said Ed Brady, Chairman, National Association of Home Builders. “As existing home inventory remains flat, we should see more consumers turning to new construction.”
“July’s positive report shows there is a need for new single-family homes, buoyed by increased household formation, job gains and attractive mortgage rates,” said NAHB Chief Economist Robert Dietz. “This uptick in demand should translate into increased housing production throughout 2016 and into next year.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Buyers say plate market rejected last round of mill hikes
Participants in the domestic steel plate market said the plate market never accepted mill-issued spot price increases.
Cliffs touts steel stamping solution to replace aluminum in automotive
Cliffs said it successfully completed a defect-free trial production of exposed steel parts using aluminum-forming equipment in collaboration with an unnamed OEM,
Hot-rolled market anticipates no change despite mill mark-ups
Domestic sheet market participants say recent spot price hikes from NLMK USA and Nucor will do little to shake-up stagnant market conditions. Price increases in the current market On Friday Oct. 24, NLMK customers learned that the producer’s hot- and cold-rolled prices increased $50 per short ton (st) and its coated products were $100/st higher. […]
Market sources say regional activity is dictating plate demand
Demand for plate on the spot market remains soft by comparison to years past. However, this week regional demand variations grew more pronounced.
AISI: Raw steel production bounces back
Domestic mill production rebounded last week, according to the latest production figures released by the American Iron and Steel Institute (AISI). Production had been historically strong over the summer months before softening in early October.