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
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.