27 October 2010 18:43 [Source: ICIS news]
In its monthly report, the department said that sales of new one-family residences in September rose to a seasonally-adjusted annual rate 307,000 from the revised August figure of 288,000.
August had been essentially flat with July’s revised figure of 285,000 units.
Although the September sales pace of 307,000 new homes was still 21% lower than September 2009, last month’s upturn was a sign that the sector could pull up from the crash-dive that followed the April end of a year-long federal stimulus programme.
The federal stimulus package offered an $8,000 (€5,680) tax credit to those who purchased a new or existing home. The effect of the tax credit reached its peak in April, driving sales of new single-family homes to 414,000.
But when the tax credit ended in April, the housing sector plummeted anew, falling to only 282,000 units sold by July, the lowest level recorded since the department began tracking new home sales in 1963.
Sales of new single-family homes have shown some improvement since that low point, but last month’s figures offer the first indication that the housing market can recover on the strength of fundamental demand, without injections of federal incentives.
The housing market is a key downstream consumer sector for the chemicals industry, driving demand for a wide variety of chemicals, resins and derivative products such as plastic pipe, insulation, paints and coatings, adhesives and synthetic fibres, among many others.
The American Chemistry Council (ACC) estimates that each new home built represents some $16,000 worth of chemicals and derivatives used in the structure or in production of component materials.
The department’s report on September’s improved sales pace for new one-family homes - considered the core of the housing construction market - came in the wake of other positive indicators for the sector.
In addition, on Monday this week, the National Association of Realtors (NAR) reported that US sales of existing homes shot up by 10% in September, an unexpected gain that even eclipsed the 7.6% advance in August.
($1 = €0.71)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections