Steel Markets
Case-Shiller Home Price Index at All-Time High
Written by Sandy Williams
October 30, 2017
Home prices rose 6.1 percent in August for an all-time year-over-year gain in the latest S&P CoreLogic Case-Shiller Home Price Index. The 20-city composite posted a 5.9 percent jump from August 2016.
“Home price increases appear to be unstoppable,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, noting that housing is outpacing the rest of the economy. “Most prices across the rest of the economy are barely moving compared to housing. Aside from oil, the only other major item with price gains close to housing was hospital services, which were up 4.6 percent. Wages climbed 3.6 percent in the year to August.”
The 20-city index on a month-over-month basis gained 0.5 percent with 19 of the 20 cities reporting increases. Atlanta was the only city to slip on the monthly index, down 0.2 percent.
Low mortgage rates combined with an improving economy are supporting home prices, said Blitzer.
“The price gains are not simply a rebound from the financial crisis; nationally and in nine of the 20 cities in the report, home prices have reached new all-time highs. However, home prices will not rise forever,” said Blitzer. “Measures of affordability are beginning to slide, indicating that the pool of buyers is shrinking. The Federal Reserve is pushing short-term interest rates upward and mortgage rates are likely to follow over time, removing a key factor supporting rising home prices.”
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.