Steel Markets

June Existing-Home Sales Up for First Time in Four Months
Written by David Schollaert
July 22, 2021
Existing-home sales rose in June, ending a four-month decline, reported the National Association of Realtors. Three of the four major U.S. regions registered small month-over-month gains, while the South was sideways. All four areas saw double-digit gains year on year.
June sales rose 1.4% from May to a seasonally adjusted annual rate of 5.86 million. Total registered sales of 4.77 million were up 22.9% from a year ago.
“Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales,” said Lawrence Yun, NAR’s chief economist. “Home sales continue to run at a pace above the rate seen before the pandemic.”
The median existing-home price rose 23.4% from June 2020 to a record high of $363,300. All regions posted double-digit increases in pricing. June marks the 112th straight month of year-over-year gains.
“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,” Yun continued. “Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”
Total housing inventory at the end of June rose 3.3% from May to 1.25 million units, down 18.8% from one year ago. Inventory is at a 2.6-month supply at the current sales pace. Properties averaged 17 days on the market in June, unchanged since April and down from 24 days a year ago. NAR reports that 89% of homes sold in June were on the market for less than a month. First-time buyers accounted for 31% of sales in June, unchanged with May but down from 35% in June 2020.

David Schollaert
Read more from David SchollaertLatest in Steel Markets

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.

Hot-rolled price hikes garner mixed reactions from the market
Several steel market sources say they were blindsided when mills increased spot prices for hot-rolled coils this week.

Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.