Steel Markets
New Home Sales Rebound in August
Written by Sandy Williams
September 25, 2019
New home sales rose a solid 7.1 percent in August and jumped 18 percent from a year ago, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. Sales in August were at a seasonally adjusted annual rate of 713,000.
“With job growth continuing and lower interest rates in place, builders report rising confidence levels, and this is reflected in today’s solid sales report,” said National Association of Home Builders Chairman Greg Ugalde.
The inventory of new homes for sale was estimated at 326,000 in August, representing a 5.5-months’ supply at the current sales pace. The median sales price was $328,400, a 2.2 percent increase from $321,400 in August 2018.
Sales rose 11.7 percent in the South and 7.8 percent in the West. Less activity was seen in the Northeast and Midwest with sales down 16.5 percent and 10.5 percent, respectively.
“We have seen a general rebound in the housing market since spring as sales, starts and permits have all registered gains,” said Danushka Nanayakkara-Skillington, NAHB’s acting vice president for forecasting and analysis. “However, affordability remains a factor because buyers can’t benefit from lower interest rates if they don’t have the money for a down payment.”
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.