Steel Markets
New Home Sales Increase for Second Month
Written by Sandy Williams
March 5, 2019
Sales of new single-family houses rose 3.7 percent from November to December to a seasonally adjusted rate of 621,000, says the latest report by the U.S. Census Bureau and the Department of Housing and Urban Development. November’s data was revised downward to 599,000 homes sold from a previously reported rate of 657,000. Sales fell 2.4 percent compared to December 2017.
“Despite a period of weakness during the fall of 2018, new home sales ended 2018 up 1.5 percent compared to the total for 2017,” commented National Association of Home Builders economist Robert Dietz.
The median sales price in December was $318,600 and the average sales price $377,000.
Inventory at the end of December was 344,000, a supply of 6.6 months at the current sales rate.
Sales in December increased in all regions except the Midwest, which fell 15.3 percent. Sales in the Northeast jumped 44.8 percent from 29,000 units to 42,000. Sales in the South increased by 5 percent and in the West by 1.4 percent.
“The big picture here is that sales are recovering from the 549,000 low in October, when activity likely was depressed by Hurricane Michael,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note to clients.
“The increase in mortgage applications last fall is starting to work through the numbers, and we expect further increases in sales—with an even-money chance of new cycle highs—in the spring,” he added.
Data collection and processing were delayed for the December report due to the partial government shutdown in December and January. The January report will be released on March 14.
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.