Steel Markets

New Home Sales Slip in November as Supply Tightens
Written by Sandy Williams
December 28, 2020
New home sales in November slipped 11 percent from October to a seasonally adjusted annual rate of 841,000, reported the Census Bureau and Department of Housing and Urban Development. The pace of sales continues to outperform the 2019 rate however, up 20.8 percent from November last year.
The median sales price in November was $335,300 and the average sales price $390,100. Inventory stood at 286,000, a supply of 4.1 months at the current sales rate and 11.2 percent lower than a year ago.
“Though the market remains strong, the pace of sales pulled back in November as inventory remains low and affordability concerns persist as builders grapple with a shortage of lots, labor and building materials,” said National Association of Home Builders Chairman Chuck Fowke.
“The home building industry saw a historic gap between the pace of new home sales and construction of for-sale single-family housing this fall,” said NAHB Chief Economist Robert Dietz. “As a result, the pace of new home sales was expected to slow to allow construction to catch up. This appears to have occurred in November as inventory of completed, ready to occupy new homes was down 43 percent compared to November 2019 at just 43,000 homes nationwide.”
New home sales rose on a year-over-year basis in all regions: 28.2 percent in the Northeast, 24 percent in the Midwest, 16.9 percent in the South, and 20.5 percent in the West.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

Sheet market participants say sales still in a slump
Across the US and throughout the steel supply chain, market participants are reporting another painfully quiet week for hot-rolled (HR) coil sales.

CRU: Lower sheet prices have pulled back demand for imports
Domestic sheet prices in the US remained under pressure, limiting interest in imports, while domestic prices for longs products continued to rise.

President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.

USS, government officials give update on Clairton Coke Works incident
U.S. Steel, Allegheny County executive Sara Innamorato, and Pennsylvania Gov. Josh Shapiro clarified details from early reports about the Clairton Coke Works facility explosion just one day earlier.