Home sales may be off to a sluggish start this year, but home owners are still upbeat when it comes to the value of their homes. They’re willing to spend to preserve value.
Home-improving giants Lowe’s Co. and Home Depot Inc. reported “blowout fourth quarter profits,” which beat expectations with sales advancing more than 7 percent at both retailers, Bloomberg News reports. Purchases greater than $500 surged 13 percent at Lowe’s. January is showing strong gains too, heading into the spring selling season.
“Consumers are feeling better about their jobs, their wages, and certainly feeling better about the value of their home,” Lowe’s Chief Executive Officer Robert Niblock told Bloomberg. “They are re-engaging in projects that they have put off.”
The remodeling industry also confirms the gains. Remodeling companies see increases in major projects and committed work for the next three months are at all-time highs, according to a fourth quarter survey by the National Association of Home Builders.
Source: “Americans Are Still Housing Bulls, Just Ask Home Depot or Lowe’s,” Bloomberg News (Feb. 25, 2015)