Steel Markets

Sales of Existing Homes Surge
Written by Sandy Williams
December 21, 2017
Existing home sales surged for a third month in November, increasing at their strongest pace in almost 11 years, reports the National Association of Realtors. Sales jumped 5.6 percent sequentially to a seasonally adjusted annual rate of 5.81 million and were 3.8 percent higher year-over-year. The median home price for all types of existing housing was $248,000, an increase of 5.8 percent from November 2016.
Single-family home sales increased 4.5 percent last month, while existing condo and co-op sales grew 14.3 percent. The median price for a single-family home was $248,000 and for condos $242,500. Prices were up 5.4 percent and 8.8 percent year-over-year, respectively.
Housing inventory tightened to 1.67 million existing homes for sale at the end of November. Inventory is down 7.2 percent from October and 9.7 percent from a year ago. At the current sales pace, inventory is at a 3.4-month supply.
“Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end,” said NAR Chief Economist Lawrence Yun. “As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”
Existing home sales increased 67 percent in the Northeast, 8.4 percent in the Midwest, and 8.3 percent in the South. Sales in the West declined 2.3 percent.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

USW cheers Evraz NA agreement with Atlas Holdings
The United Steelworkers (USW) labor union celebrated recent news of the signed agreement between Atlas Holdings and Evraz NA in which the Connecticut-based private equity company said it plans to acquire North America’s Evraz facilities.

Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.

Hot-rolled coil buyers continue seeking certainty
Steel market participants contend that buyers will remain in “wait-and-see" mode until some market stability is restored.

Latin American steel advocates warn on cheap import flood
Subsidized Chinese steel imports and cheap steel products from Association of Southeast Asian Nations (ASEAN) entering Latin American (LATAM) are threatening the region's steel market.

CRU: Steel prices fall amid global demand weakness
The forceful headwinds bearing down on steel markets across the globe have created demand challenges and sent prices southward. The US, however, challenged the global trend.