Steel Markets
Home Prices Accelerate to Highest Annual Rate in 15 Years
Written by Sandy Williams
March 30, 2021
Home prices soared in January to an 11.2% annual gain, according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. The January rate jumped from 10.4% in December and was the highest annual rate gain since 2006.
The 20-city composite posted an 11.1% annual gain with all cities reporting higher prices, led by Phoenix, Seattle and San Diego.
“January’s data remain consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI. “This demand may represent buyers who accelerated purchases that would have happened anyway over the next several years.” Lazzara added that it is still unclear if the shift from cities will be permanent.
On a month-over-over month basis, prices rose in 19 of the 20 cities. The only city to see a decline in the 20-city segment was Cleveland, Ohio, dipping just 0.1%.
Another home price index, the Federal Housing Finance Agency House Price Index, showed home prices up 12% from January 2020 to January 2021.
“While house prices experienced historic growth rates in 2020 and into the new year, the monthly gains appear to be moderating,” said Dr. Lynn Fisher, FHFA’s Deputy Director of the Division of Research and Statistics. “House prices increased by 1.0% in January, which is relatively still high, but represents the smallest month-over-month gain since June 2020.”
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.