Saudi Press

Saudi Arabia and the world
Friday, Aug 21, 2026

Housing market concerns begin to emerge

Housing market concerns begin to emerge

The housing market is still red hot. But there are growing concerns about how much longer this strength can last.
Home Depot (HD) reported earnings and sales that topped Wall Street's forecasts Tuesday. Lowe's (LOW) also reported better-than-expected earnings and sales on Wednesday morning, and CEO Marvin Ellison said in a statement that sales were lifted thanks to "broad-based demand driven by the continued consumer focus on the home."

Still, rising interest rates could eventually be a problem for Home Depot and Lowe's. Even though the Federal Reserve is expected to keep its key short-term rate near zero for the foreseeable future, longer-term bond yields have started to spike. And mortgage rates are influenced more by the 10-year Treasury than Fed rates.

In an ominous sign, Home Depot declined to give any guidance for 2021. Its shares fell 3% on the news.

"Increased demand for single-family homes has driven housing turnover and home price appreciation," said Home Depot chief financial officer Richard McPhail during a conference call with analysts Tuesday. "However, significant uncertainty remains with respect to the course of the pandemic, the distribution of vaccines, short-term fiscal policy and how these developments will impact the broader economy and ultimately, consumer spending."

For now, it appears that consumers are not too concerned.

The latest housing market numbers still paint a healthy picture. Consumers are eager to find more space and are willing to pay ever higher prices for homes.

S&P/Case Shiller and the Federal Housing Finance Agency reported a more than 1% monthly increase in their latest housing price reports Tuesday.

"Both surveys suggest strong momentum and support our view that the housing market remains in solid footing," said Blerina Uruci, an economist with Barclays, in a report.

The housing market strength is helping to lift the prices of lumber too, which has also boosted Home Depot. Ted Decker, the retailer's president, said during the earnings call that "during the fourth quarter, pricing for both framing and panel lumber" surged, helping to lift overall sales.

Forestry companies have benefited from the housing boom and soaring lumber prices as well.

Two timber exchange-traded funds with the ticker symbols of WOOD and CUT -- the iShares Global Timber & Forestry (WOOD) and Invesco MSCI Global Timber (CUT) ETFs -- are each up more than 5% this year and have both gained more than 25% in the past 12 months.

Builders remain confident that the housing boom won't come to an end just yet.

Toll Brothers (TOL) reported earnings and sales after the market closed Tuesday that easily beat analysts' expectations.

"The housing market remains very strong, driven by a tight supply of new and existing homes for sale, favorable demographic trends, low mortgage rates, and a heightened appreciation for home ownership," said Toll Brothers CEO Douglas Yearley, Jr. in the earnings release. He added that he expects these market conditions "to continue for the foreseeable future."
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
Trump’s Top General Seeks an Exit Strategy From Iran War, Report Says
Brock Lesnar Retires From Wrestling, Closing a Career of Rare Athletic Range and Lasting Controversy
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Saudi Arabia, Turkey and Pakistan Sign Mutual-Defence Pact
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
A SpaceX Rocket Is About to Crash Into the Moon — and Scientists Hope to Watch
Modern Slavery Decisions Broaden the Al Fayed Inquiry’s Frame
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Arrest Warrant Issued in Lebanon for Tycoon Spotted Meeting Netanyahu in Washington
Trump says Israel ‘would not survive’ without US
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Spain Defeats Argentina in Extra Time to Win Second World Cup
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
US Retaliates Against Iran After Two American Troops Killed in Jordan
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
×