US new home sales rise 1.5% in March, showing renewed recovery

23 April 2013 15:51  [Source: ICIS news]

WASHINGTON (ICIS)--US sales of new single-family homes rose by 1.5% in March from February, the Commerce Department said on Tuesday, an advance that in part offsets the 4.6% decline seen in February’s sales.

In its monthly report, the department said that sales of new one-family homes last month were at a seasonally adjusted annual pace of 417,000, marking a 1.5% improvement from the 411,000 rate reported for February.

Although the small bounce in new home sales for March does not stand as a strong comeback from the February decline, last month’s sales figures do mark a solid 18.5% improvement compared with the March 2012 data.

The market for new single-family homes has seen often sharp ups and downs over recent months, including a 7.3% decline in December, a surprising 15.6% jump in January, followed by the 4.6% drop in February and the new if slight 1.5% upturn for March.

However, the year-over-year statistics suggest that the US housing sector is in a certain if bumpy recovery.

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, roofing materials and synthetic fibres.

The American Chemistry Council (ACC) estimates that each new home built represents some $15,000 (€11,550) in chemicals and derivatives used in the structure or in production of component materials, equipment and furnishings.

($1 = €0.77)

Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy

By: Joe Kamalick
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