Home Depot has been an indicator of the red-hot housing market.
What’s going on: The company jumped on the heels of the construction boom because of the pandemic, giving us only a hint that it hasn’t slowed down.
A new data point lights up the boom: US home prices soared in December at the fastest pace in six years, the latest sign of strong demand.
Details: Home Depot said on Tuesday that vinyl flooring, appliances and trim drove sales late last year.
- DIY project sales continued at a breakneck pace.
- Purchases of housing supplies by professional builders increased the most since the pandemic began.
Get up to speed fast: Demand for homes has exploded, but supply is still tight, causing prices to skyrocket.
- Builders are racing to keep up with the demand for new homes.
- Borrowing rates plummeted when the pandemic hit, prompting locked-in residents to search for larger or different homes.
The other side: As people spent more time in their homes, they also put extra money in them, fueling a frenzy for home improvements.
What they are saying: “It took us 19 years … to get the first $ 20 billion in total sales,” but sales increased more than that in a single yearHome Depot CEO Craig Menear told analysts today.