Home Depot has been a proxy for the white-hot housing market.
What is happening: The company rode with the pandemic construction boom – and just gave us a hint that it hasn’t slowed down.
A new data point eases the boom: house prices in the US rose at the fastest pace in six years in December – the latest sign of strong demand.
Details: Home Depot said on Tuesday that vinyl flooring, appliances and moldings boosted sales late last year.
- The sale of do-it-yourself projects continued at breakneck speed.
- Purchases of housing stock by professional builders have increased the most since the start of the pandemic.
Overtaking quickly: Demand for houses has skyrocketed, but supply is still tight, causing prices to skyrocket.
- Builders are rushing to keep up with the demand for new homes.
- Interest on loans plummeted as the pandemic struck, enticing trapped residents to seek larger or different homes.
The other side: As people spent more time in their homes, they also put extra money into them, sparking a home improvement frenzy.
What they say: “It took us 19 years … to bring in the first $ 20 billion in total sales,” but sales jumped by more than that in one year alone, Home Depot CEO Craig Menear told analysts today.