Steel Markets
New Home Sales Make Surprising Gain in April
Written by Sandy Williams
May 26, 2020
New home sales rose slightly in April, inching up 0.6 percent to a seasonally adjusted annual rate of 623,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. Compared to April 2019, home sales declined 6.2 percent.
Median sales price was $309,900 and the average sales price was $364,500. Inventory was estimated at 325,000 units at the end of April, a supply of 6.3 months at the current sales rate.
Sales increased in all regions except the West, which declined 6.3 percent. New home sales rose 8.7 percent in the Northwest and 2.4 percent in both the Midwest and South.
The rise in sales last month took economists by surprise. A poll by Reuters forecast sales to plummet 21.9 percent in April and Zillow Research expected a 23 percent rout. The April rate follows a 13.7 percent decline in March.
“The coronavirus pandemic has generated any number of nasty surprises over the past few months, but the unexpected strength in April new home sales may be the first pleasant surprise yet — and the clearest indicator so far that housing, so unlike the last time around, will be a source of relative strength during this downturn,” said Zillow Research economist Matthew Speakman.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Tampa Steel Conference: Two weeks to go!
With just two weeks to go, we have over 400 registered so far for the 36th annual Tampa Steel Conference. Join us and hundreds of industry executives at the JW Marriott Tampa Water Street from Sunday, February 2, through Tuesday, February 4.
Galvanized buyers see glimmers of optimism amidst the chaos
Reflecting on 2024 and looking ahead to the new year, galvanized steel buyers on this month’s HARDI call expressed a mix of cautious optimism with lingering uncertainties.
Construction spending steady in November
Construction spending inched higher in November for a second straight month.
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.