Home Depot, 27% decline; S&P Schiller Housing Price Index - 20 year low

Less building, less spending...

Yesterday, #2 home improvement retailer, Lowes reported a 33% drop in Q4 profit and 7.6% sames store sales decline.

Today, Home Depot, #1 home improvement chain, reported a 27% drop in Q4 net earnings and -8.3% same store sales decline.

Profit missed expectations and earnings per share could fall as much as 24% this year due to the U.S. housing slump,

HD said it would save cash by opening fewer new stores and cutting cap ex by 33%.

Less equity, less spending...

S&P/Case-Shiller U.S. National Home Price Index showing the collapse in home prices accelerated

to a record pace in Q4 of 2007 5.4% vs 1.8% in Q3 , with prices plunging 8.9% last year, the largest decline in the 20 year history of the index.The

The 10 city composite index of the largest metropolitan areas fell 2.3% in December versus November and tumbled 9.8% YOY, which set a new record.

The 20 city composite index for 20 metropolitan areas fell 2.1% in December from November and sank 9.1% YOY.

Charlotte, North Carolina, Portland, Oregon and Seattle were the only three metropolitan in the indexes where prices rose in 2007.

Seattle, however, came in at only 0.5%, an almost flat growth rate.

Miami, remained the weakest market, reporting a double-digit annual decline of 17.5%, and can only decline further...

with a 37-month supply of unsold condos, and 19,000 more new units set to hit the market this year.

Miami followed by Las Vegas and Phoenix at a 15.3% drop each. Even San Francisco, slipped into negative double-digit territory with an annual decline of 10.8%.

Comments

b said…
Here's a nice stat for you from down here in MIA:

According to Florida Ass. of Realtors:
Total number of Existing Single-Family Home Sales in Miami in January 2008: 276
Total number of Condo sales in Miami in Jan 2008: 298

From the Miami-Dade Clerk of Courts site:
Total number of foreclosures in Miami in January 2008: 3,434