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Household Repair Spending Indicates Recovering Housing Market

recession-or-recovery [1]Home Depot [2]recently revealed its second quarter results [3]revealing that it experienced a record number of transactions in the last three months. Multiple market watchers believe the health of home depot is a sign of the housing market recovery overall, CNNMoney [4] said in a report [5].

"All of that suggests Americans are ramping up spending on efforts to spruce up newly-purchased homes or ones they'd like to sell," CNNMoney said. "While housing might not be back to pre-crisis levels, it's certainly looking a lot healthier."

According to Home Depot's announcement, sales reached $24.8 billion for the second quarter of fiscal 2015, a 4.3 percent increase from the second quarter of fiscal 2014. Comparable store sales for the second quarter of fiscal 2015 were positive 4.2 percent, and comp sales for U.S. stores were positive 5.7 percent.
In addition, the retailer reported that net earnings for the second quarter of fiscal 2015 were $2.2 billion, or $1.73 per diluted share, up from the $2.1 billion, or $1.52 per diluted share, reported in 2014 during the same period. For the second quarter of fiscal 2015, diluted earnings per share increased 13.8 percent from the same period in the prior year.
"We were pleased with this quarter's results. We saw balanced growth across our business resulting from strength in the core of the store as well as the continued recovery of the U.S. housing market," said Craig Menear, chairman, CEO and president of Home Depot. "I would like to thank our associates for their hard work and dedication."
CNNMoney writer Matt Eganalso reported that Home Depot is not the only group reporting housing market improvements.
On Monday, [6] the National Association of Home Builders [7] (NAHB)/Wells Fargo Housing Market Index [8](HMI) found that builder sentiment in the market for newly built, single-family homes in August rose one point to a level of 61, the highest reading since November 2005.

“The fact the builder confidence has been in the low 60s for three straight months shows that single-family housing is making slow but steady progress,” said Tom Woods, NAHB chairman and a home builder from Blue Springs, Missouri. “However, we continue to hear that builders face difficulties accessing land and labor.”

Additionally, on Tuesday [9], single-family construction starts climbed higher for the month of July, while permits and completions dropped, according to residential construction statistics for July 2015 [10] jointly released by the U.S. Census Bureau [11] and HUD [12].

According to the data, single-family housing starts were at a rate of 782,000 in July, 12.8 percent above the revised June figure of 693,000.

Selma Hepp, Trulia's chief economist weighed in on the new residential data, finding that although single-family starts were up in July, they are still running below historical levels.

"Finally a little bit stronger than multi-family starts, the single-family starts are still below long-run average in most major metros across the county," Hepp said. "In fact, Trulia’s latest study reveals that the single-family component is still well below historical norms even in metros seeing improvement in annualized permit activity. Only 13 out of the 100 largest U.S. metros saw increases in single-family construction over their historical norms, most notably in Austin, Houston, Charleston and Nashville."