America's Fixer-Upper Housing Market
Lahart, Justin . Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 Feb 2015: C.8.
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ABSTRACT
A simple linear regression analysis shows that if the same relationship seen in the period between 2002 and 2010
held, the real home improvement sales figure in December would have been associated with combined sales of 7
million new and existing homes, at an annual rate.
FULL TEXT
[Financial Analysis and Commentary]
It isn't a great time to be in the business of selling homes. But fixing them up? That is a different story.
The Commerce Department on Wednesday said that builders in January sold 481,000 new, single-family homes at
a seasonally adjusted annual rate. That was near the highest level since 2008, but still well below the levels of the
1990s and early 2000s. This came on top of disappointing January existing-home sales figures from the National
Association of Realtors on Monday.
In contrast, the home-improvement industry is doing well: Witness strong results this week from Lowe's Cos. and
Home Depot Inc. This reflects a broader trend. Commerce Department data show that in real terms, people are
spending as much on home and garden tools and supplies as they were in 2007.
Home improvement's strength amid continued weakness in home sales represents a break in the trend that
existed up until a few years ago, when they were more closely related. A simple linear regression analysis shows
that if the same relationship seen in the period between 2002 and 2010 held, the real home improvement sales
figure in December would have been associated with combined sales of 7 million new and existing homes, at an
annual rate. That is about 1.4 million higher than what was actually recorded. Rather than buy their dream home,
people are trying to make the home they already own look more like it.
Credit: By Justin Lahart
DETAILS
Subject: Real estate sales; Home building; Economic trends; Home improvement industry
Company / organization: Name: National Association of Realtors; NAICS: 813910; Name: Home Depot Inc;
NAICS: 444110; Name: Lowes Cos Inc; NAICS: 444110
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Classification: 3100: Capital &debt management; 3400: Investment analysis &personal finance;
8360: Real estate; 8390: Retailing industry; 9190: United States
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: C.8
Publication year: 2015
Publication date: Feb 26, 2015
column: Heard on the Street
Publisher: Dow Jones &Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: Commentary
ProQuest document ID: 1658359339
Document URL: https://search.proquest.com/docview/1658359339?accountid=194676
Copyright: (c) 2015 Dow Jones &Company, Inc. Reproduced with permission of copyright owner.
Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-21
Database: ABI/INFORM Global
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