Steel Markets
Existing Home Sales Drop to 2015 Level
Written by Sandy Williams
February 21, 2019
Existing home sales fell for the third month in January for the lowest seasonally adjusted annual rate since November 2015, according to the National Association of Realtors. Sales dipped 1.2 percent from December to a SAAR of 4.94 million homes last month. Compared to a year ago, sales were down 8.5 percent.
“Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low,” said NAR Chief Economist Lawrence Yun. “Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”
Inventory was at 1.59 million units, up from 1.53 million in December, representing a 3.9-month supply at the current sales rate. Inventory is still considered too low for a healthy market.
“In particular, the lower end of the market is experiencing a greater shortage, and more home construction is needed,” says Yun. “Taking steps to lower construction costs would be a tremendous help. Local zoning ordinances should also be reformed, while the housing permitting process must be expedited; these simple acts would immediately increase homeownership opportunities and boost local economies.”
The national median sale price was $247,500 in January, up 2.8 percent from a year earlier and down slightly from $254,700 in December. The gain in January was the slowest year-over-year increase since February 2012.
Sales fell 2.5 percent in the Midwest, 1.0 percent in the South and 2.9 percent in the West. The Northeast was the sole region to register a gain, inching up 2.9 percent for an annual rate of 700,000.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.
Sheet market participants say sales still in a slump
Across the US and throughout the steel supply chain, market participants are reporting another painfully quiet week for hot-rolled (HR) coil sales.
CRU: Lower sheet prices have pulled back demand for imports
Domestic sheet prices in the US remained under pressure, limiting interest in imports, while domestic prices for longs products continued to rise.
President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.
USS, government officials give update on Clairton Coke Works incident
U.S. Steel, Allegheny County executive Sara Innamorato, and Pennsylvania Gov. Josh Shapiro clarified details from early reports about the Clairton Coke Works facility explosion just one day earlier.