Steel Markets
Case-Shiller Home Price Index at All-Time High
Written by Sandy Williams
October 30, 2017
Home prices rose 6.1 percent in August for an all-time year-over-year gain in the latest S&P CoreLogic Case-Shiller Home Price Index. The 20-city composite posted a 5.9 percent jump from August 2016.
“Home price increases appear to be unstoppable,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, noting that housing is outpacing the rest of the economy. “Most prices across the rest of the economy are barely moving compared to housing. Aside from oil, the only other major item with price gains close to housing was hospital services, which were up 4.6 percent. Wages climbed 3.6 percent in the year to August.”
The 20-city index on a month-over-month basis gained 0.5 percent with 19 of the 20 cities reporting increases. Atlanta was the only city to slip on the monthly index, down 0.2 percent.
Low mortgage rates combined with an improving economy are supporting home prices, said Blitzer.
“The price gains are not simply a rebound from the financial crisis; nationally and in nine of the 20 cities in the report, home prices have reached new all-time highs. However, home prices will not rise forever,” said Blitzer. “Measures of affordability are beginning to slide, indicating that the pool of buyers is shrinking. The Federal Reserve is pushing short-term interest rates upward and mortgage rates are likely to follow over time, removing a key factor supporting rising home prices.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Steady architecture billings signal improving conditions
The November ABI decreased month over month but was still the third-highest reading of the past two years.
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Slowing data center, warehouse planning drives decline in Dodge index
The Dodge Momentum Index (DMI) slid further in November as planning for data centers and warehouses continued to decline.
Latin America’s steel industry grapples with declining demand, rising imports
With climbing imports and falling consumption, the Latin American steel industry has had a challenging 2024, according to an Alacero report.
CRU: Trump tariffs could stimulate steel demand
Now that the dust has settled from the US election, as have the immediate reactions in the equity, bond, and commodity markets, this is a prime opportunity to look at how a second Trump presidency might affect the US steel market.