US Housing Market is still going Strong: Home Depot sales Show!

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US Housing Market is still going Strong: Home Depot sales Show

 

Patrick Iturra, August 24, 2022

The rising mortgage rates and unreasonable real estate prices show a terrible sign for housing and the US economy. One more thing that worries a lot of real estate houses and building permits decreased compared to June. 

However, one thing that has come out the as good news is the sales report of Home Depot (HD). The home improvement giant has reported the highest earnings. 

But don’t tell that to Home Depot. The home improvement retail giant reported record earnings and sales for its most recent quarter.

Home Depot Revenue

The company has become a leader in revenue due to increased demand by professional contractors and the DIY crowd. As per Home Depot management, the payment has increased by 6.5% every year, and the figure here is $43.8 Billion. Also, the company reported a net profit of $5.2 Billion, which amounts to $5.05 per share. 

Also, this is not the case with a specific region or store; the sales numbers are strong across the board. During the last year, store sales increased by 5.4% in 2021, but right now, it has increased by 5.8% during the same quarter.

The Home Depot CEO credited the rise in sales to the increase in the demand for home improvement projects during the earnings release. Also, Ted Decker [ Home Depot CEO] has quoted that this is the highest increase in quarterly profits and sales figures in the company’s history, despite being a challenging time for the real estate market. 

“Our performance reflects continued strength in demand for home improvement projects,” said Home Depot CEO and president Ted Decker in the earnings release. Decker added that these were the highest quarterly profit and sales figures in the company’s history, despite “a challenging and dynamic environment.”

The share price of home depot increased by 5% during the Tuesday trade in mid-trading sessions, whereas the share declined during the market opening.

Earlier, the investors were concerned about the decline of Home Depot sales because customers were not making purchases the same way they were before! The transactions had decreased by 3%, but the customer had spent more money on their investments. Also, the average sales price was more than $90, an increase of 9% from the previous year. 

US Housing Market is still going Strong: Home Depot sales Show

Home Depot Vice President says most spending has increased due to inflation. 

One of the most positive news here is that the Home that Ted Decker mentioned at the conference that there are no visible signs of decline in the housing market. The demand has increased based on professional contractors as well as DIY consumers. 

Over the past years, people have spent a lot of time in their homes, and now they want to fix it with their cash in hand. Despite a decline in home sales, this home improvement trend is growing, especially when the economy is going to cool at the end of 2023. This is the main reason behind the increase in sales of Home Depot. 

Now that I have mentioned this news, I will put my analysis forward as a strategic investment advisor. I have industry experience of 24+ years, and I am here to share my prediction for the future real estate market and trends. 

Real estate will grow further! 

Yes, this is my statement for the future of the housing market. I have been in the multiple incline and declines in the housing market for the past 24+ Years. 

Currently, interest rates are increasing, and real estate is becoming expensive even though the government is keen to take the proper steps to neutralize the impact of the Global pandemic. 

Home improvement is in demand right now because people have been confined to their homes for a long time and have decided to go for home improvement. Many people are hiring professionals, whereas some are taking the DIY route! 

But real estate will grow! Therefore, the demand is going to decline as well! Right now, we can see probable chances of an oncoming recession.

However, if you want to buy real estate, you should invest! 

No matter what happens, real estate is one of the most rewarding passive income assets that you can invest in 2022. 

However, you should invest wisely and choose the property that will generate passive income for you! Now, how do you do that? 

If you have any real estate investment inquiries, contact me here! It depends on the selection and market forecasting because not every real estate will be a gold mine. You have to do a lot of research during the process of selection. Therefore, I am here to help you.

I am HERE to listen to your query and answer with my experience! 

Business development is the ideas, initiatives, and activities that help improve a business. My experience results in your business’s increased revenue, expansion, and profitability by building strategic partnerships and making strategic business decisions.

I don’t sell houses. I grow your Assets. Patrick Iturra, Asset Manager at Estate Investments Group  

 

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