Steel Markets
Existing Home Sales Drop to 2015 Level
Written by Sandy Williams
February 21, 2019
Existing home sales fell for the third month in January for the lowest seasonally adjusted annual rate since November 2015, according to the National Association of Realtors. Sales dipped 1.2 percent from December to a SAAR of 4.94 million homes last month. Compared to a year ago, sales were down 8.5 percent.
“Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low,” said NAR Chief Economist Lawrence Yun. “Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”
Inventory was at 1.59 million units, up from 1.53 million in December, representing a 3.9-month supply at the current sales rate. Inventory is still considered too low for a healthy market.
“In particular, the lower end of the market is experiencing a greater shortage, and more home construction is needed,” says Yun. “Taking steps to lower construction costs would be a tremendous help. Local zoning ordinances should also be reformed, while the housing permitting process must be expedited; these simple acts would immediately increase homeownership opportunities and boost local economies.”
The national median sale price was $247,500 in January, up 2.8 percent from a year earlier and down slightly from $254,700 in December. The gain in January was the slowest year-over-year increase since February 2012.
Sales fell 2.5 percent in the Midwest, 1.0 percent in the South and 2.9 percent in the West. The Northeast was the sole region to register a gain, inching up 2.9 percent for an annual rate of 700,000.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
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.
HVAC shipments slip in September but are still trending higher
Following a strong August, total heating and cooling equipment shipments eased in September to a five-month low, according to the latest data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
GrafTech Q3 loss widens as electrode demand remains soft
GrafTech International’s third-quarter net loss increased from last year, with the company anticipating continuing weakness in near-term demand for graphite electrodes.
Cliffs forecasts 2025 rebound after Q3’s weakest demand since Covid
The negative impact of high interest rates on consumer behavior, particularly in the automotive and housing sectors, was the primary driver of the demand weakness seen across the third quarter, according to Cleveland-Cliffs executives.