Steel Markets
Existing Home Sales Retreat 3.7% in February
Written by Sandy Williams
March 23, 2017
Existing home sales slowed in February, declining by 3.7 percent from the previous month to a seasonally adjusted annual rate of 5.84 million. According to the National Association of Realtors, the rate continues to exceed year ago levels and was 5.4 percent above the sales pace reported in February 2016.
The median sale price for an existing home grew 7.7 percent from last year to $228,400. The price increase was the fastest in just over a year and was the 60th consecutive year-over-year gain.
Housing inventory, although still 6.4 percent lower than at this time last year, increased 4.2 percent in February to 1.75 existing homes. At the current sales pace, unsold inventory is at a 3.8 month supply, up slightly from 3.5 months in January.
Single family home sales slipped 3 percent in February while condominium and co-op sales fell 9.2 percent. Median price was up 7.6 percent to $299,900 year-over-year for single family homes and up 8.2 percent to $216,100 for condominiums.
Higher prices and tight inventory contributed to weaker sales in February, said Lawrence Yun, NAR chief economist. “Realtors are reporting stronger foot traffic from a year ago, but low supply in the affordable price range continues to be the pest that’s pushing up price growth and pressuring the budgets of prospective buyers,” said Yun. “Newly listed properties are being snatched up quickly so far this year and leaving behind minimal choices for buyers trying to reach the market.”
Added Yun, “A growing share of homeowners in NAR’s first quarter HOME survey said now is a good time to sell, but until an increase in listings actually occurs, home prices will continue to move hastily.”
Regionally, sales were down 13.8 percent in the Northeast, 7.0 percent in the Midwest, and 3.1 percent in the West. Sales of existing homes rose 1.3 percent in the South.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
CRU Insight: A 50% S232 tariff will raise US steel prices and shift trade flows
This CRU Insight examines how the increase in Section 232 tariffs on steel to challenging levels will lead to significatively higher prices for end consumers in the US market.
Steel market shakes tariffs off amid weak demand
Service centers and distributors contend that weak demand is to blame for the flattening of domestic steel spot prices, as reflected in Nucor Steel’s weekly Consumer Spot Price (CSP) notice. On Monday, the Charlotte, North Carolina-headquartered steel producer left prices unchanged from the previous week. Nucor has maintained prices of plate produced in Brandenburg since March 28.