Housing Rebound an Assist for Sales: Home Depot CEO

by 13 Mar 2013

Home Depot expects 3 percent growth in 2013, the same it saw in 2012 as economic growth remains steady, CEO Frank Blake told CNBC's "Street Signs" on Wednesday.

"Housing is getting better," Blake said. "You can see it in terms of household formation, housing turnover, new home starts. There are a lot of data saying housing is actually improving." But he said it will still be a slow process.

That should help Home Depot, particularly as higher home prices make it more likely homeowners will take on improvement projects. "They know they're going to get the value out they're going to put in," he said.

Tim Wadhams, CEO of home improvement and building materials company Masco, meanwhile, predicted that the housing recovery will go on for four or five years. "A housing recovery is important, about 25-30 percent of our top-line is tied to housing," Wadhams said.

The repair/remodel business benefits as homeowners fix up their homes before selling them, while buyers tend to fix up their new homes after moving in.

Read full article from CNBC

 

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