Home Depot was a proxy for the white-hot housing market.
What is happening: The company rode on the tail of the pandemic building boom – and we just gave a hint that it hadn’t slowed down.
A fresh data point eases the boom: US house prices rose the highest in six years in December – the latest sign of strong demand.
Details: Home Depot said on Tuesday that vinyl floors, appliances and moldings had increased sales late last year.
- Sales for DIY projects continued at an incredible pace.
- Professional builders’ purchases of household supplies have risen the most since the pandemic began.
Fast fast in: Demand for housing has skyrocketed, but supply is still tight and prices are rising.
- Builders are rushing to keep up with the demand for new homes.
- Borrowing rates fell when the pandemic struck, forcing residents to search for larger or other homes.
The other side: As people spent more time in their homes, they also poured extra cash into them, which sparked a frenzy for home improvements.
What they say: “It took us 19 years … to get the first sales of $ 20 billion,” but sales increased by more than that just in a yearHome Depot CEO Craig Menear told analysts today.