Steel Markets
Accelerating Home Prices Continue to Outpace Supply
Written by Sandy Williams
November 27, 2017
Home prices continued to accelerate across the nation in September, posting the fastest annual rate increase since June 2014. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index showed home prices up 6.2 percent in September, compared to a gain of 5.9 percent in August. The 20-City Composite posted a 6.2 percent gain year-over-year, up from 5.8 percent the previous month, with every city reporting gains.
Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities. Seattle led the way with a 12.9 percent year-over-year price increase, followed by Las Vegas with a 9.0 percent increase and San Diego with an 8.2 percent increase. The smallest gains were in Atlanta, New York, Miami, Chicago and Washington.
“Most economic indicators suggest that home prices can see further gains,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. Rental rates and home prices are climbing, the rent-to-buy ratio remains stable, the average rate on a 30-year mortgage is still under 4 percent, and at a 3.8-month supply the inventory of homes for sale is still low. The overall economy is growing with the unemployment rate at 4.1 percent, inflation at 2 percent and wages rising at 3 percent or more.”
Demand for housing remains strong, but tight inventory continues to contribute to rising home prices, making it difficult for buyers to find homes within their financial reach.
“One dark cloud for housing is affordability – rising prices mean that some people will be squeezed out of the market,” Blitzer said.
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.