Steel Markets
2019 Best Year for New Home Sales Since Recession
Written by Sandy Williams
January 28, 2020
New home sales were essentially flat in December, edging down 0.4 percent from November to a seasonally adjusted annual rate of 694,000, according the latest data by the U.S. Census Bureau and the Department of Housing and Urban Development. Compared to December 2018, sales increased 23.0 percent.
Sales for the full year, however, rose 10 percent to an estimated 681,000 units, making it the best year for new home sales since the Great Recession, said National Association of Home Builders Chief Economist Robert Dietz.
“The acceleration of new home sales during the second half of 2019 returns the new home sales pace to the general trend line it has been on since the end of the Great Recession,” said Dietz. “This general rising trend for new home sales, after the housing affordability crunch of 2018, suggests additional construction gains in 2020. Sales are being supported by ongoing low interest rates and historically low unemployment.”
The median price of a new home sold in December was $331,400 and the average price $384,000. Inventory at the end of December was estimated at 327,000, a supply of 5.7 months at the current sales rate.
For full-year 2019, new home sales were up 14 percent in the South and 15 percent in the West (led by the Mountain states). Sales fell 7 percent in the Midwest and 9 percent in the Northeast.
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.