Steel Markets
New Home Sales Rebound in June
Written by Sandy Williams
July 25, 2019
Sales of new homes rebounded in June after two months of decline, says new data released by the Commerce Department on Wednesday. Sales of new single-family homes were at a seasonally adjusted annual rate of 646,000 last month, a 7.0 percent increase from the revised May number and 4.5 percent higher than a year ago.
The median sales price was $310,400 and the average price $368,000. Inventory of 338,000 new houses at the end of June represents a supply of 6.3 months at the current sales rate.
“Though there is a clear demand for new homes, builders continue to wrestle with affordability headwinds, including shortages of buildable lots and skilled labor, that are constraining sales,” said NAHB Chairman Greg Ugalde.
“The June figures are in line with our forecast predicting a modest 3.5 percent growth in new home sales for 2019, due largely to affordability concerns,” said NAHB Economist Danushka Nanayakkara-Skillington.
On a year-over-year basis, new home sales are 19.4 percent higher in the West and 9.5 percent higher in the South. Sales are down 50 percent in the Northeast and 17.6 percent in the Midwest.
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.