Steel Markets
New Home Sales Make Surprise Surge
Written by Sandy Williams
June 24, 2014
Sales of new single-family home sales rose to a seasonally adjusted annual rate of 504,000 in May, the highest level since May 2008, according to Census Bureau data. Sales were well above analyst estimates of 415,000 to 462,000, surging 18.6 percent above the revised April rate of 425,000 and 16.9 percent above the May 2013 estimate of 431,000.
The median sales price of new houses rose sharply in May 2014 to $282,000, from $275,800 the previous month and 263,600 in May last year. Median price, however, has yet to climb back to March’s price of $285,400.
Inventory of homes available was unchanged from April at 189,000, but at the current sales rate the monthly supply dropped to 4.5 months from 5.3 months. The supply rate is well below the 6 months considered normal for the market.
The Northeast had the strongest gains with sales up 54.5 percent from April, followed by the West with sales up 34 percent. Midwest sales increased month over month and the South by 14.2 percent.
The positive data for new home sales follows a 4.9 percent month-over-month gain for sales of existing homes. Existing home sales rose to a seasonally adjusted annual rate of 4.89 million in May but were to be 5 percent lower than the 5.15 million level of May 2013.
SMU Note: You can view the interactive graphic below when you are logged into the website and reading the newsletter online. If you have not logged into the website in the past and need a new user name and password we can do that for you out of our office. Contact us at: info@SteelMarketUpdate.com or by calling 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”98″ Residential Housing Statistics (Starts/Permits/Sales)}
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CMC looks beyond Arizona micro-mill woes to long-term viability of construction mart
Despite the economic and geopolitical upheaval of the last five years, CMC President and CEO Peter Matt points out that the construction market has been an essential element of the way forward.
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.
Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]
HVAC equipment shipments slow in December but strong annually
Shipments of heating and cooling equipment in the US fell to an 11-month low in December, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).