Steel Markets
Sales of Existing Homes Soar in September
Written by Sandy Williams
October 22, 2020
Existing home sales soared in September, up 9.4 percent to a seasonally adjusted annual rate of 6.5 million. Compared to September 2019, sales were up nearly 21 percent, reported the National Association of Realtors.
“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season,” said Lawrence Yun, NAR’s chief economist. “I would attribute this jump to record-low interest rates and an abundance of buyers in the marketplace, including buyers of vacation homes given the greater flexibility to work from home.”
The demand for housing has left inventory historically low, said Yun. “To their credit, we have seen some homebuilders move to ramp up supply, but a need for even more production still exists.”
Total housing inventory was 1.47 million units at the end of September, down 1.3 percent from August and 19.2 percent from a year ago. Inventory is at a 2.7-month supply at the current sales pace and at a record low.
The median existing home price leapt 14.8 percent year-over-year to $311,800 for the 103rd straight month of annual gains.
Single-family home sales jumped 9.7 percent from August and 21.8 percent from a year ago to a seasonally adjusted annual rate of 570,000. The median price rose 15.2 percent to $272,700.
Condominiums and co-op sales jumped 6.3 percent from August and 13.6 percent from September 2019 to a SAAR of 670,000 units. The median sales price of $272,700 increased 9.9 percent year-over-year.
Sales grew in every region from August to September and prices increased from a year ago by double digits.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Dodge Momentum drops on moderating data center growth
Slowing growth in data center planning caused the Dodge Momentum Index (DMI) to pull back in September. The decline followed five months of growth after the index hit a two-year low in March.
US construction spending drops again in August
Construction spending in the US declined for a third month in August but showed an increase year over year (y/y). The US Census Bureau estimated construction spending to be $2.131 trillion in August on a seasonally adjusted annual rate (SAAR). While this was 0.1% below July’s revised spending rate, it was 4.1% higher than spending […]
Global steel production eases in August
Steel mill output around the world totaled 144.8 million metric tons (mt) in August, the lowest monthly rate of 2024.
Dismal ABI suggests weakness in non-res construction will persist
The August Architecture Billings Index (ABI) continued to indicate weak business conditions amongst architecture firms through August, according to the American Institute of Architects (AIA) and Deltek.
AISI: Raw steel production slips to 5-week low
Domestic raw steel mill production eased last week but remains at a healthy rate, according to the latest release from the American Iron and Steel Institute (AISI).