Concerns that the U.S. housing market is losing momentum ignore signs that show strength in the sector, Robert Tillman, chairman of Lowe’s Co. said last week.
Tillman told a retail conference that low interest rates, positive demographic trends and a growing immigrant population suggest a strong U.S. housing market in 2003. Single family building permits are rising at record levels, indicating a strong pipeline of new homes, he said.
Recently, some economists, including Federal Reserve Chairman Alan Greenspan, have said they expect the housing and mortgage boom to cool this year. “Some feel that the housing market is on the verge of collapse,” Tillman said. “these concerns seem to ignore the fact that for the past 34 years, the median home prices in the U.S. have risen each and every year.”
Tillman said that despite concerns about Iraq and increased joblessness, consumers have not stopped improving their homes. “The questions surrounding Iraq, rising unemployment and more recently rising fuel prices have caused consumers to become even more selective in how they spend,” he said. “Fortunately, we continue to capture a disproportionate share of discretionary spending” as rising housing values give consumers confidence to undertake home projects, he added.
