Steel Markets
Home Sales Start Strong in January
Written by Sandy Williams
February 21, 2020
Existing-home sales started the year strong at a seasonally adjusted rate of 5.46 million in January. Sales slipped 1.3 percent from December, but were up 9.6 percent from a year ago.
“The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales,” said Lawrence Yun, chief analyst for the National Association of Realtors.
The median existing-home price increased 6.8 percent from January 2019 to $266,300. Inventory levels in January were at the lowest level since 1999 at 1.42 million units. Inventory increased 2.2 percent from December, but was down 10.7 percent from a year ago. Unsold inventory is at a 3.1-month supply at the current sales price.
“Mortgage rates have helped with affordability, but it is supply conditions that are driving price growth,” Yun said.
Sales of both single-family homes and existing condos and co-ops dipped from December, but were up 9.7 percent and 8.9 percent from a year ago. The median price for existing single-family homes increased 6.9 percent year-over-year to $268,600. Median price for condos increased 5.7 percent to $248,100 in January.
Compared to December, sales in the Midwest and South grew 2.4 percent and 0.4 percent, the Northeast was unchanged, and sales in the West declined 9.4 percent. Median home price increased across all regions and was strongest in the Northeast with an 11.5 percent annual gain.
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.