Steel Markets
Existing Home Sales and Pricing Accelerate in December
Written by Sandy Williams
January 23, 2020
Existing home sales grew 3.6 percent in December, bouncing back from a slight decline in November and jumping 10.8 percent from a year ago. The National Association of Realtors reported existing home sales were at a seasonally adjusted annual rate of 5.54 million in December.
For 2019, total sales ended on a par with 2018 at 5.34 million. Yearly sales were 2.2 percent higher in the South, offsetting declines of 1.8 percent in the West and 1.6 percent in the Midwest. Sales in the Northeast remained unchanged.
Lawrence Yun, NAR’s chief economist, said home sales fluctuated a great deal last year. “I view 2019 as a neutral year for housing in terms of sales,” said Yun. “Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem, with first-time buyers affected the most.”
At the end of December, inventory was estimated at 1.40 million units, a decline of 14.6 percent from November and down 8.5 percent from December 2018. At the current sales rate, inventory is at a 3.0 month supply, indicating fewer choices for prospective home buyers.
The median existing home price in December grew 7.8 percent year-over-year to $274,500. “Price appreciation has rapidly accelerated, and areas that are relatively unaffordable or declining in affordability are starting to experience slower job growth,” said Yun. “The hope is for price appreciation to slow in line with wage growth, which is about 3.0 percent.”
Sales of single-family homes rose to a SAAR of 4.92 million in December and were 10.6 percent higher than a year ago. The median price for an existing single-family home was $276,900, an 8.0 percent increase from December 2018.
Existing condominiums and co-op sales were up 10.7 percent from November to a SAAR of 620,000 units. Median existing condo price rose 6.0 percent year-over-year to $255,400.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
GrafTech’s Q2 loss widens in ‘challenging’ business environment
GrafTech cited a “challenging” part of the business cycle as its net loss widened in the second quarter.
CRU: Poor steel margins continue to push down raw material prices
Both iron ore and coking coal prices fell this week because of resistance from buyers. Iron ore prices have continued to fall throughout the past week, following sharp declines in steel prices in China, given no new policy announcement from the ‘Third Plenum’ meeting.
Op-Ed: The myth of the Mexican steel surge
We have heard ominous warnings about a flood of Mexican steel threatening the US market. It's the kind of rhetoric that gets thrown around often with little regard for the facts. The reality is that the Mexican steel surge is simply not happening, and the US steel industry has consistently maintained a significant trade surplus in finished products with Mexico. In 2023 alone, this surplus exceeded $3 billion.
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]
Influx of coated products fuels recent import surge
Steel imports fell back in May from April’s recent high but remained elevated compared to the levels seen over the past year. A deeper dive into the data confirms what SMU has been hearing from sources: Coated sheet is driving the recent rise in overall import levels.