Steel Markets
NAR: Existing-Home Sales Dipped Again in March
Written by David Schollaert
April 21, 2022
Existing-home sales fell in March for the second consecutive month, according to the National Association of Realtors.
Three out of the four major US regions saw sales fall month-over-month in March while holding steady in the West. Sales were down across each region year-over-year.
March sales fell 2.7% from February to a seasonally adjusted annual rate of 5.77 million. Total registered sales were down by 4.5% from 6.04 million a year ago.
“The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power,” NAR chief economist Lawrence Yun said in a statement. “Still, homes are selling rapidly, and home price gains remain in the double-digits.”
The median existing-home price rose 15.0% from March 2021 to $373,300. All regions posted increased pricing last month, marking the 121st straight month of year-over-year gains, and the longest-running streak on record.
“Home prices have consistently moved upward as supply remains tight,” said Yun. “However, sellers should not expect the easy-profit gains and should look for multiple offers to fade as demand continues to subside.”
Total housing inventory at the end of March rose 11.8% from February to 950,000 units but was down 9.5% from one year ago. Inventory is at a 2.0-month supply at the current sales pace. Properties averaged 17 days on the market in March, one day less than February’s total, and down 18 days from the same period a year ago.
NAR reports that 87% of homes sold in March were on the market for less than a month. First-time buyers accounted for 30% of sales last month, up from 29% in February and down from 32% year on year.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.17% in March, up from 3.76% in the month prior. The average commitment rate across all of 2021 was 2.96%.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Markets
GrafTech’s Q2 loss widens in ‘challenging’ business environment
GrafTech cited a “challenging” part of the business cycle as its net loss widened in the second quarter.
CRU: Poor steel margins continue to push down raw material prices
Both iron ore and coking coal prices fell this week because of resistance from buyers. Iron ore prices have continued to fall throughout the past week, following sharp declines in steel prices in China, given no new policy announcement from the ‘Third Plenum’ meeting.
Op-Ed: The myth of the Mexican steel surge
We have heard ominous warnings about a flood of Mexican steel threatening the US market. It's the kind of rhetoric that gets thrown around often with little regard for the facts. The reality is that the Mexican steel surge is simply not happening, and the US steel industry has consistently maintained a significant trade surplus in finished products with Mexico. In 2023 alone, this surplus exceeded $3 billion.
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]
Influx of coated products fuels recent import surge
Steel imports fell back in May from April’s recent high but remained elevated compared to the levels seen over the past year. A deeper dive into the data confirms what SMU has been hearing from sources: Coated sheet is driving the recent rise in overall import levels.