Steel Markets
Existing Home Sales Edge Down in November
Written by Sandy Williams
December 18, 2019
Existing home sales slipped in November after making gains in October, according to the latest report from the National Association of Realtors. Completed transactions fell 1.7 percent to a seasonally adjusted annual rate of 5.35 million last month, but were up 2.7 percent from a year ago.
The decline is not a cause for worry, said NAR Chief Economist Lawrence Yun. “Sales will be choppy when inventory levels are low, but the economy is otherwise performing very well with more than 2 million job gains in the past year.” The NAR Real Estate Forecast Summit predicts that the U.S. will avoid a recession in 2020 and the economy will grow 2 percent in the coming year.
Inventory totaled 1.64 million units, a decrease of 7.3 percent from October and 5.7 percent from November 2018. At the current sales rate, there is a 3.7-month supply of homes for sale, down from 3.9 months in October.
Prices increased in all regions during November with the median existing home price up 5.4 percent to $271,300. Price gain was highest in the West, gaining 7.1 percent.
Single-family home sales were at a SAAR of 4.79 million in November, down from 4.85 million in October, but up 3.5 percent from a year ago. The median existing single-family home price was $274,000 in November 2019, up 5.4 percent from November 2018.
Existing condominium and co-op sales were down 5.1 percent from October and 3.4 percent lower than a year ago at a SAAR of 560,000 units. The median existing condo price increased 4.5 percent from a year ago to $248,200 in November.
Compared to October, sales increased 1.4 percent in the Northeast and 2.3 percent in the Midwest. Sales declined 3.9 percent in the South and 3.5 percent in the West.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
AISI: Raw steel production bounces back
Domestic mill production rebounded last week, according to the latest production figures released by the American Iron and Steel Institute (AISI). Production had been historically strong over the summer months before softening in early October.
US sets Section 232 tariffs on trucks and buses
Medium- and heavy-duty trucks (MHDV) and buses imported to the US will start being charged Section 232 tariffs beginning Nov. 1.
Hot-rolled sources say demand continues to dwindle, prices feel arbitrary
Genuine demand, they stated, will return when the market feels stable again.
FabArc Steel Supply completes projects in Mississippi, Georgia
FabArc Steel Supply announced this week the completion of two large-scale projects in Georgia and Mississippi.
Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.