Steel Markets
Case-Shiller: Home Prices Rising at Slower Rate
Written by Sandy Williams
January 28, 2019
Home prices are continuing to rise but at a slower rate, reports S&P Dow Jones Indices. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index was nearly flat in November, slipping 0.1 percent to a 5.2 percent annual gain for the month. Indices showed a steady drop in price gains throughout 2018.
The 10-City Composite annual increase dropped to 4.3 percent, down from 4.7 percent in October, while the 20-City Composite posted a 4.7 percent year-over-year gain compared to 5.0 percent the previous month.
“Home prices are still rising, but more slowly than in recent months,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The pace of price increases is being dampened by declining sales of existing homes and weaker affordability. Sales peaked in November 2017 and drifted down through 2018. Affordability reflects higher prices and increased mortgage rates through much of last year. Following a shift in Fed policy in December, mortgage rates backed off to about 4.45 percent from 4.95 percent.
“Housing market conditions are mixed while analysts’ comments express concerns that housing is weakening and could affect the broader economy. Current low inventories of homes for sale – about a four-month supply – are supporting home prices. New home construction trends, like sales of existing homes, peaked in late 2017 and are flat to down since then. Stable 2 percent inflation, continued employment growth and rising wages are all favorable. Measures of consumer debt and debt service do not suggest any immediate problems,” he added.
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.