Steel Markets
Home Price Growth Shows No Sign of Slowing
Written by Sandy Williams
November 24, 2020
Home prices in September surged to their biggest annual gain in six years, says the latest data from S&P Case-Shiller. The S&P Core-Logic Case-Shiller National Home Price NSA Index jumped 7 percent from a 5.8 percent gain in August.
“Housing prices were notably – I am tempted to say ‘very’ – strong in September,” said Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “This month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes. The next several months’ reports should help to shed light on this question.”
The 20-city composite, minus the Detroit area, posted a 6.6 percent annual gain, a strong uptick from 5.3 percent the previous month. Detroit data was unavailable due to Covid-19 disruption to record gathering. On a month-over-month basis, the National Index posted a 1.2 percent increase, while the 10-City and 20-City Composites posted increases of 1.3 percent and 1.2 percent, respectively, before seasonal adjustment.
Phoenix, Seattle and San Diego led the price gains with home prices up 11.4 percent, 20.1 percent, and 9.5 percent, respectively. Phoenix has led the nation in price increases for the past 16 months.
“The delayed spring homebuying season fueled sales well into October and past the time when they would normally begin to slow down,” said George Ratiu, senior economist at realtor.com. “Heading into winter, demand continues to be strong, driven by mortgage rates, which have broken record lows 13 times this year, and a growing list of companies that have extended their remote work policies well into 2021.”
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).