Steel Markets
Existing Home Sales Increase for Second Month
Written by Sandy Williams
September 18, 2019
Existing home sales grew for the second consecutive month with three U.S. regions reporting higher gains, said the National Association of Realtors. Sales rose 1.3 percent from July to a seasonally adjusted annual rate of 5.49 million in August. Sales were up 2.6 percent from a year ago. Sales of single-family homes rose 2.9 percent from August 2018, while sales of condos and co-ops increased 1.7 percent.
The median sales price rose 4.7 percent from a year ago to $278,200. The single-family median home price rose 4.7 percent year-over-year to $280,700, and the condos and co-op median price jumped 5.2 percent to $257,600.
NAR Chief Economist Lawrence Yun said falling mortgage rates benefited sales in August. “As expected, buyers are finding it hard to resist the current rates,” he said. “The desire to take advantage of these promising conditions is leading more buyers to the market.”
Inventory decreased to 1.86 million homes for sale, from 1.90 million in July and 1.91 million in August 2018. At the current sales price, inventory is at a 4.1-month supply, down from 4.2 months in July.
The regional breakdown shows existing home sales rising 7.6 percent in the Northeast, 3.1 percent in the Midwest and 0.9 percent in the South. The West was the only region with declining sales, falling 3.4 percent to 1.14 million in August. Existing home prices grew the most in the Midwest and declined only in the Northeast.
Low inventory may push home prices up, said Yun. “Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.”
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 […]