Steel Markets
Increase in October Home Sales Offset by Annual Decline
Written by Sandy Williams
November 22, 2018
After six months of decline, existing-home sales showed some improvement in October. Completed transactions for single-family homes, condos, townhomes and co-ops increased 1.4 percent from September to a seasonally adjusted annual rate of 5.22 million, according to data from the National Association of Realtors.
The increase was tempered by a 5.1 percent drop in sales compared to a year ago, the largest annual decline since October 2014. The annual decline suggests that the housing sector will continue to soften in the coming months, said Lawrence Yun, NAR chief economist. “There is some feeling that the market could actually go even lower than what it is now in terms of sales,” Yun said.
Housing inventory declined from 1.88 million in September to 1.85 million existing homes available for sale at the end of October. At the current sales pace, inventory is at a 4.3-month supply, down from 4.4 months in September.
The median existing-home price rose 3.8 percent year-over-year to $255,400, with price gains noted in all four regions.
Existing home sales increased 1.5 percent in the Northeast, 1.9 percent in the South and 2.8 percent in the West. Sales in the Midwest slipped 0.8 percent last month.
Earlier this year, a shortage of inventory was blamed for slowing sales, but a series of Federal Reserve interest rates hikes have raised mortgage rates, adding to affordability issues.
“Rising interest rates and increasing home prices continue to suppress the rate of first-time homebuyers. Home sales could further decline before stabilizing. The Federal Reserve should, therefore, re-evaluate its monetary policy of tightening credit, especially in light of softening inflationary pressures, to help ease the financial burden on potential first-time buyers and assure a slump in the market causes no lasting damage to the economy,” said Yun.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Drilling activity slows in US but picks up steam in Canada
Oil and gas drilling in the US slowed for a third consecutive week, while activity in Canada hovered just shy of the 19-week high reached two weeks prior.
SMU Survey: Buyers remain leery of tariffs, but more see reshoring happening
This week’s SMU survey reveals that a growing number of steel market participants are weary of tariffs and are awaiting evidence of progress reshoring. At the start of 2025, now-second-term President, Donald Trump, pronounced that his plan to implement tariffs would result in increased revenue for the US.
Hot-rolled coil market remains slow, market participants say
Hot rolled spot market participants reported another week of moderate demand and ample supply, with no strong signs that conditions will change next week.
Plate prices slip even as mills officially keep tags unchanged
US plate market participants are not fazed by the constricted nature of the current spot market pricing environment. Right now, they said, mill’s choosing to hold prices from one month to the next makes sense because service centers remain amply supplied and demand is stable. Modest upticks or slips in prices are aligned with most of the participants' expectations right now.
Still no cure for the summertime HR market blues
Seasonal steel slowdowns combined with ongoing anxieties about tariffs and mill strategies have dampened sentiment for several hot-rolled steel market participants this week. Buyers are jittery, market stands still The operator of a Midwest-based service center said that steel buyers are scared. “Everyone is afraid to buy steel right now. Unless you’re on a […]