Steel Markets
New Home Sales Plummet in October
Written by Sandy Williams
November 29, 2018
Sales of new single-family homes dropped 8.9 percent to a seasonally adjusted annual rate of 544,000 from an upwardly revised September estimate of 597,000 units, according to the latest data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. October sales were at the lowest sales pace since December 2016 and were 12.0 percent below October 2017.
The median sales price of new houses sold in October was $309,700 and the average sales price was $395,000. An estimated 336,000 new homes were for sale at the end of October, a supply of 7.4 months at the current sales rate. The supply is well over the accepted market balance of six months, as well as at the highest supply level since February 2011.
“The November reading is consistent with reports from our builders, who say that the job market and demographic tailwinds bode well for housing demand, but rising interest rates and home prices are forcing customers to take a pause,” said Randy Noel, chairman of the National Association of Home Builders. “Policymakers should see this drop in sales as an indicator that housing affordability will continue to slow down the market.”
Sales declined sharply in all four regions, tumbling 22.1 percent in the Midwest, 18.5 percent in the Northeast, 7.7 percent in the South and 3.2 percent in the West. Notably, sales were at their lowest level in the Northeast since September 2015 and at a two and one-half year low in the Midwest. New home sales in the South were at their lowest level since July of last year.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
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.
Hot-rolled price hikes garner mixed reactions from the market
Several steel market sources say they were blindsided when mills increased spot prices for hot-rolled coils this week.
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.