Steel Markets
New Home Sales Plummet in September
Written by Sandy Williams
October 25, 2018
Sales of new homes fell in September to a seasonally adjusted annual rate of 553,000, the lowest level since December 2016. Sales dropped 5.5 percent from the previous month and 13.2 percent from September 2017, according to the latest report from the Commerce Department.
“Home price gains and rising interest rates are slowing down the housing market, particularly in high-cost areas and among entry-level buyers who are sensitive to price increases,” said National Association of Home Builders chief economist Robert Dietz. “Builders need to provide homes at different price points to address these affordability concerns. Meanwhile, overall job and economic growth should help support the housing market in the months ahead as it adjusts to higher mortgage interest rates.”
The price of a new home last month averaged $377,200. The median price was $320,000.
At the end of September, an estimated 327,000 homes were in inventory, a supply of 7.1 months at the current sales rate.
“One thing is for certain, the economy cannot grow at a sustainable 3 percent pace for long if new home sales continue to tumble,” said Chris Rupkey, chief financial economist at MUFG Financial Group. “The Fed’s rising interest rates may be more harmful for economic growth than they thought, chiefly because of its effect on long-term interest rates and hence mortgage rates.”
Regionally, sales rose only in the Midwest, gaining 6.9 percent in September. Sales in the Northeast plunged 40.6 percent to its lowest level since 2015, followed by declines of 12 percent in the West and 1.5 percent in the South.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CRU: What will the US elections mean for economic policy?
In this Insight piece, CRU economists explore the possible economic effects of Trump's and Harris' agendas.
Construction sector added 25,000 jobs in September
The construction sector added 25,000 jobs in September, driven by labor shortages and improved wages, according to data released by the US Bureau of Labor Statistics.
US steel exports rise to 12-month high in August
The amount of steel exiting the country in August reached the highest monthly rate recorded since August 2023.
Worldsteel lowers short-term forecast for global steel demand
The World Steel Association (worldsteel) has made significant downward revisions to its Short Range Outlook for global steel demand.
US steel imports tick up in August, fall again in September
August steel imports totaled 2.38 million short tons (st) according to final data released this week by the US Commerce Departmen