Steel Markets
Existing Home Availability Tight and Costly
Written by Sandy Williams
April 24, 2018
Existing home sales in March rose 1.1 percent to a seasonally adjusted annual rate of 5.60 million. Tight inventory and affordability have kept sales 1.2 percent below year-ago levels, according to the National Association of Realtors.
“Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million,” said NAR Chief Economist Lawrence Yun. “The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year-ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford.”
Inventory at the end of March was 1.67 million existing homes for sale, an increase of 5.7 percent from February but still 7.2 percent lower than the 2017 level. Inventory levels have fallen year-over-year for 34 consecutive months, said NAR. March inventory stands at a 3.5-month supply at the current sales pace.
While availability is falling, pricing continues to rise. The median existing home price for all types of housing rose 5.8 percent to $250,400 in March.
Single-family home sales rose a slight 0.6 percent from February to a seasonally adjusted annual rate of 4.99 million in March. Median price jumped 5.9 percent year-over-year to $252,100.
Existing condominium and co-op sales increased 5.2 percent sequentially to a seasonally adjusted annual rate of 610,000 units in March, but were still 3.2 percent below March 2017. The median existing condo price jumped 4.8 percent from last year to $236,100.
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.