Steel Markets
New Home Sales Increase for Second Month
Written by Sandy Williams
March 5, 2019
Sales of new single-family houses rose 3.7 percent from November to December to a seasonally adjusted rate of 621,000, says the latest report by the U.S. Census Bureau and the Department of Housing and Urban Development. November’s data was revised downward to 599,000 homes sold from a previously reported rate of 657,000. Sales fell 2.4 percent compared to December 2017.
“Despite a period of weakness during the fall of 2018, new home sales ended 2018 up 1.5 percent compared to the total for 2017,” commented National Association of Home Builders economist Robert Dietz.
The median sales price in December was $318,600 and the average sales price $377,000.
Inventory at the end of December was 344,000, a supply of 6.6 months at the current sales rate.
Sales in December increased in all regions except the Midwest, which fell 15.3 percent. Sales in the Northeast jumped 44.8 percent from 29,000 units to 42,000. Sales in the South increased by 5 percent and in the West by 1.4 percent.
“The big picture here is that sales are recovering from the 549,000 low in October, when activity likely was depressed by Hurricane Michael,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note to clients.
“The increase in mortgage applications last fall is starting to work through the numbers, and we expect further increases in sales—with an even-money chance of new cycle highs—in the spring,” he added.
Data collection and processing were delayed for the December report due to the partial government shutdown in December and January. The January report will be released on March 14.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...
Great Lakes iron ore cargoes down in September as Cleveland tonnage slips
Iron ore shipments from US Great Lakes ports fell sharply in September, per the latest from the Lake Carriers’ Association (LCA) of Westlake, Ohio.
HVAC equipment shipments down through August
Although total HVAC shipments fell in August, YTD volumes remain relatively strong. Nearly 15 million units were produced in the first eight months of the year, the fourth-highest rate in our 19-year data history.
Sheet market sources slam tariffs for prolonged demand slump
Tariffs are ultimately to blame for stagnant demand in the hot-rolled coil market, domestic market sources tell SMU.
Week in Review: Sept. 29 -Oct. 3
Let’s take a quick tour of some key stories from SMU in the week of Sept. 29 - Oct. 3.