Steel Markets
Existing Home Sales Show Slight Decline in April
Written by Sandy Williams
May 21, 2019
Existing-home sales declined slightly from March to April, slipping 0.4 percent to a seasonally adjusted annual rate of 5.19 million. Sales were down 4.4 percent from April 2018, said the National Association of Realtors.
Lawrence Yun, NAR’s chief economist, said he is not overly concerned about the dip in sales and expects moderate growth very soon. “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” he said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
The median existing-home price in April increased 3.6 percent from a year ago to $267,300, marking the 86th straight month of year-over-year gains.
April inventory increased 9.6 percent from March to 1.83 million homes for sale and grew 1.7 percent from a year ago. Inventory is at a 4.2-month supply at the current sales rate, up from 3.8 months in March and 4.0 months in April 2018.
Single-family home sales decreased 4.67 percent from March and 4.0 percent from a year ago. Condo and co-op sales were up 5.6 percent from the prior month and down 8.1 percent from April 2018.
On a month-over-month basis, sales fell 4.5 percent in the Northeast and 0.4 percent in the South. Sales were flat in the Midwest and grew 1.8 percent in the West.
“I think the market had a bit of a slow start in the fall, but Realtors all over the country have been telling me that April was a nice rebound. We’re hopeful and expect that this will continue heading into the summer,” said NAR President John Smaby. “Homes over the last month sold quickly, which is not only a win-win for buyers and sellers, but it’s also great for the real estate industry.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
USW cheers Evraz NA agreement with Atlas Holdings
The United Steelworkers (USW) labor union celebrated recent news of the signed agreement between Atlas Holdings and Evraz NA in which the Connecticut-based private equity company said it plans to acquire North America’s Evraz facilities.
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
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.