Steel Markets
NAR: Existing Home Sales Decline in June
Written by Sandy Williams
July 22, 2019
Sales of existing homes declined 1.7 percent in June after gaining traction in May. Sales fell to a seasonally adjusted annual rate of 5.27 million, according to the National Association of Realtors.
Compared to May, sales declined in the South (-3.4 percent) and West (-3.5 percent) and improved slightly in the Northeast (+1.5 percent) and Midwest (+1.6 percent).
Median existing home price was at an all-time high of $285,700, a 4.13 percent jump from June 2018. Prices rose in all four regions with the highest gains in the Midwest and South, up 6.7 percent and 4.9 percent, respectively. Median home price was $321,200 in the Northeast, $230,400 in the Midwest, $248,600 in the South, and $410,400 in the West.
“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” said Lawrence Yun, NAR’s chief economist. Yun says the nation is in the midst of a housing shortage and much more inventory is needed. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
Inventory for the month increased to 1.93 million homes, up from 1.91 million for sale in May. At the current sales pace, unsold inventory is at a 4.4-month supply compared to 4.3 months in May and a year ago.
“Either a strong pent-up demand will show in the upcoming months or there is a lack of confidence that is keeping buyers from this major expenditure,” Yun added. “It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”
Single-family home sales declined 1.7 percent year-over-year to a SAAR of 4.96 million in June. Median price rose 4.5 percent to $288,900.
Existing condo and co-op sales fell 6.5 percent from last year to a SAAR of 580,000 units. Median condo price was up 2.8 percent from a year ago to $260,100 in June.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
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.
Hot-rolled coil sources lament stagnant conditions
Participants in the hot-rolled sheet market expressed frustration with the continuing lack of demand this week.
Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."
ITC’s final ruling: Dumped, subsidized CORE imports are harming domestic market
The US International Trade Commission (ITC) finds that corrosion resistant steel (CORE) imports from 10 countries have caused material damage to domestic product producers, according to the ITC’s statement.
HR buyers report mixed market conditions
Hot-rolled coil market participants said they’re staying on their toes amid a market that continues to be characterized by uncertainty. A veteran Midwest-based service center operator contends that current conditions are unprecedentedly volatile. Being flexible with customers and strategic with mills is the only way to navigate through the uncertainty, he said. “No one wants […]