I love sharing good news and I am happy to report that homeowners are spending like it’s 2006; before the housing bubble hit.
Just where are they shopping? In a recent blog, I shared information about the shopping habits of wealthy consumers, including uncovering some of their favorite stores such as Home Depot. Today, the home improvement giant revealed in a CNN Money story that the amount of Home Depot transactions exceeding $900 rose 6% last quarter. Home Depot also stated sales momentum built during the summer: going from 3.5% growth in May to 8% in July. The bottom line: Americans increased spending on appliances, tools, plumbing, décor, lighting, kitchen and bath hardware and flooring.
“We continue to see positive signs in the housing market,” Carol Tome, Home Depot’s chief financial officer, told analysts during a conference call.
According to Home Depot, two critical metrics are running ahead of where the company anticipated, namely housing turnover and household formation. Home prices also continue to increase moderately.
“When consumers believe their home is an investment, not an expense, they spend differently. We are seeing that,” Tome said.
The story goes on to say that homebuilders are joining in Home Depot’s optimism. Construction on new single-family homes rose almost 13% in July from June to the best level since December 2007. This has created confidence with the National Association of Home Builders.
Are you among the homeowners spending like it’s 2006? Or are you planning to begin a new home search? If you are considering buying a home in Santa Barbara, Hope Ranch, Montecito or any of the other surrounding upscale communities, please give me a call at 805.886.9378 or email me at Cristal@montecito-estate.com. If you are considering selling, let’s get moving while the interest rates remain low.