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
CMC looks beyond Arizona micro-mill woes to long-term viability of construction mart
Despite the economic and geopolitical upheaval of the last five years, CMC President and CEO Peter Matt points out that the construction market has been an essential element of the way forward.
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.
Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]
HVAC equipment shipments slow in December but strong annually
Shipments of heating and cooling equipment in the US fell to an 11-month low in December, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).