Stagnant Home Depot Sales Might Show a Crackdown IN the Housing Market


The housing market depends on a number of aspects. It is not just a mere transaction between the buyer and the seller but there are various facets to it. Home improvement and building supplies play a huge role in the home selling market, and a static sales report for Home Depot is going to affect the market adversely.

The market has been going strong for a long period of time. However, slow Home Depot sales have resulted in cracks in the strong foundation of the reigning market scenario. According to the Home Depot sales report, the spring sale witnessed a slow start. If new reports are to be believed, the share of Home Depot fell by 2% in the early trend.

Home Depot keeps track of all the sales in each showroom location. They evaluate the sales at least once a year. Wall Street was expecting to jump by 5.4% but Home Depot reported the rise was only 4.2%. This was the first time Home Depot failed to top Analysts’ estimate in two years.

Rising mortgages can prove to be a bone of contention for the profits of home depots. It can negatively impact the sales and can bring them down considerably. All of this will have a comprehensive effect on the housing market and because of that, the entire buy and sell will crash down. Another factor to be wary of is mortgage rates. If they keep soaring high it will become an obligation for buyers to invest in new homes. That is not the best news for Home Depot and their year-end sales.

Home improvement supplies are primarily used when a house is remodeled or renovated. Home Depot is one of the renowned companies in the US which provides an array of products and services to their customer. They are wide-spread over the US and have a hefty number of loyal customers. But a cold market is not favoring the sales of the company and that is causing a stagnant business condition.

Home improvement product sales are directly proportional to home selling and a crackdown in one results in the same fate for the other.  Wall Street is specifically worried about the downfall of the boom in the market.  An unconventional factor that guides the sale of home improvement products is the weather condition. Many retailers blame the weather for the poor performance of their business. It is a legitimate factor to consider for a company that sells home building products to customers. They cannot remodel if weather is uncooperative. Home Depot has cited that harsh winter weather conditions have majorly affected gardening supply sale. The northern part of the US and Canada have seen slow days when it comes to sales and that is predominantly because of the winter and snowfall.

It is rather a surprising development that home depot is facing such an inactive sales record given the fact that it is the best of its kind. One saving grace for Home Depot is that a lot of sellers are purchasing products to renovate and redesign their homes. Sellers flip their houses to quote a better price for their property. Also, strong demand for new homes has helped boost sales of Home Depot.

One pragmatic factor of Home Depot is that is it not a part of the online store chain which sells home improvement products. Home contractors and builders usually prefer buying lumber, plywood, concrete and other materials from a physical store. It is important for them to be able to assess the product themselves before they purchase it. This particular reason makes Home Depot a sought-after choice for sellers and even buyers.

The home market is waking up to alterations on a quarterly basis and one slight change to one parameter can change the entire scenario. A trivial change will not just affect the seller but also the buyer. For example, if the market is tight then the available houses will cost way more than their market value and the buyer might end up overpaying.

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