Will a Housing Market Crash Affect Home Depot Stock?

Will the housing market crash again? Maybe. Many aspects of the economy are cyclical, and housing prices do occasionally fall. Is a housing crash imminent? That’s harder to answer.

Some have sounded the alarm on housing for good reason. Consider the famous Case-Shiller Home Price Index, an inflation-adjusted metric created by Standard & Poor’s tracking housing prices. The index’s value was 100 back in the year 2000 and had been close to 100 when applying the index’s criteria backward to the 20th century. But since 2000, it has risen above 180 on two occasions. The first time preceded the housing crash of the Great Recession.

The second time the Case-Shiller index exceeded 180 is right now. In reality, it passed the mark way back in 2016, and it’s currently around 215. So no need to panic: Crossing 180 doesn’t immediately flip a housing-crash switch. It just shows housing prices have gone up a lot. The bigger problem, though, is how much faster home values are growing relative to average income. Consider the data over just the last 10 years.

Case-Shiller Home Price Index: National Chart

Data by YCharts.

It’s probably unsustainable for home values to outpace personal income long term. Eventually people could be priced out of affordable housing, and that could spark a housing market correction. Will that affect companies like Home Depot (NYSE:HD)?

To answer that, we can start by going back to the Great Recession. 

A model house sits atop Jenga blocks while a businessman removes a piece, creating instability.

Image source: Getty Images.

The last time Home Depot’s revenue fell

Home Depot’s revenue fell from 2007 to 2009. In fiscal 2006, when things were going well, the company generated $90.8 billion in full-year net sales. In fiscal 2009, it generated just $66.2 billion — down 27% over three years. Likewise, net earnings took a hit as the company lost operating leverage from lower sales per location. Net earnings fell a whopping 55% from $5.8 billion in 2006 to $2.6 billion in 2009.

The Case-Shiller index fell 20% from the beginning of 2007 to the end of 2009, and it’s tempting to attribute Home Depot’s slumping results entirely to plunging home values. Results from Lowe’s (NYSE:LOW) lend credibility to this theory. In fiscal 2007, Lowe’s sales at existing stores, known as comparable sales, fell 5.1%. This is similar to Home Depot’s 6.7% comps decline that same year.

But this is correlation, not causation. Consider that home values were already going down in 2006 when Home Depot’s sales were still up. Furthermore, the Case-Shiller index fell another 7% from the beginning of 2010 through the end of 2011. By contrast, both Home Depot and Lowe’s had already returned to revenue growth.

To summarize, home values and revenue for home-improvement retail don’t always track in the same direction. And that makes sense. Regular home maintenance doesn’t stop just because the value of a home drops.

Wooden blocks spell the word risk.

Image source: Getty Images.

The greater risk

There were multiple other issues affecting Home Depot’s revenue in the Great Recession, including high unemployment, lack of credit, and a construction slowdown. But that last factor

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Heavy rains affect peppers and tomatoes

story.lead_photo.captionExcessive rain will cause peppers to split, as it does tomatoes. (Special to the Democrat-Gazette)

Q Many of my peppers have big splits in them this week. Is there anything I can do to stop this? I have loads of new fruit coming on.

A Your peppers were simply overloaded with water last week and they split. This phenomenon occurs on tomatoes, peppers and even eggplant. We had too much water all at once. Cracking and splitting occur when rapid changes in soil moisture levels cause fruits to expand quicker than the tomato skin can grow. It usually affects the fruits that are nearing maturity. The peppers (and tomatoes and eggplant) are edible, if you harvest them quickly and use them. Otherwise, they begin to deteriorate rapidly and can rot on the vines.

Q Last spring a friend gave me a couple of “Celeste” fig cuttings. I put them in a pot with potting soil in a shady location and now they’ve really taken off. Should I transplant them now, or wait until after the first frost? Do I need to set them at their current depth, or bury them deeper, as you do tomato transplants? Any other advice will be appreciated. We live in Marianna, so they should do well in our yard (if I can keep squirrels, birds and raccoons away!).

A If you plan to plant them this year, and you can keep them watered, the sooner you plant, the better. It will allow the root system to start getting established before cold weather hits. Figs can suffer winter damage in a cold winter, even when they are well-established. Another option would be to keep them in their pots, move them to a protected spot for the winter, then plant them in the ground in the spring. Full morning sun and afternoon shade can help with winter hardiness. Plants in full afternoon sun go through more ups and downs with temperatures than those that are in some shade in the afternoon. When you do plant, you want to plant them at the same depth they are growing in now. Tomatoes are one of the few plants that can be buried deeper without problems.

Q How do I get a bushier “Black and Blue” salvia shrub starting next spring when the salvia comes out of dormancy? I can read a newspaper through them. What fertilizer would ensure a healthy start? Do I pinch back all new growth? The hummingbirds love this plant.

This "Black and Blue" salvia is leggy. (Special to the Democrat-Gazette)

This “Black and Blue” salvia is leggy. (Special to the Democrat-Gazette)

A I have to admit that is one of the leggiest, but tallest “Black and Blue” salvia I have seen. It normally will reach a height of 3-4 feet. After a killing frost, cut the plant back to the soil line and add a fresh layer of mulch. When new growth begins next spring, fertilize with a complete fertilizer. Normally they start blooming in early summer and continue until frost. If it starts to get

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Do Your House Cleaning Products Affect Your Health?

Most homeowners expect house cleaning products to do one thing – clean. Many consumers focus more on punchy taglines such as “kills 99% of bacteria” or “tough on stains and grease!”. But they neglect the fact that store-bought cleaning products contain a lot of harmful chemicals.

Most likely, you check the food labels to make sure that they are organic, MSG-free, etc.before you buy them. But do you ever stop to check the labels of the cleaning products you buy?

Admit it or not, you think your cleaning product is the best because it promises to kill more bacteria than its competitors. What you don’t know is that many of these cleaners and detergents contain harmful ingredients, which are great for cleaning but poses a certain danger to your health.

Read The Label: What It Says Matters

How do you know if a cleaning product is harmful? You need to know what chemicals are dangerous to your health and avoid buying products that contain such ingredients. These include bleach, parabens, ammonia. They affect your health in several ways but mostly affect the lungs. With continued and excessive exposure, these toxins can affect other parts of your body, too.

Several eco-friendly cleaning products contain VOCs or volatile organic compounds. Some products are labelled as natural, but it doesn’t mean they are safe to use. Don’t be fooled! There’s nothing organic with these products. They can lead to chronic respiratory illnesses and headaches. Products containing VOCs include air fresheners, oven sprays, dish detergents, floor polish, and aerosol sprays, to name a few.

Go Green!

Although purchasing “eco-friendly” or “green” products is a sensible choice, making sure that your cabinets are filled with safe and healthy cleaning solutions does not always mean that they are the best options. Cleaning agents aren’t regulated and held in the same standards, such as food. Simply put, there are “green” products that aren’t any better than regular cleaning agents.

So how can you make sure that you are getting an effective and healthy cleaning agent? Simple! Make your own! You don’t have to overspend. You can simply use basic items that you most likely already have in your home. A few ingredients you can use include salt, lemon juice, vinegar, water, baking soda, and borax.

You will have countless options when it comes to making a green cleaning solution using simple and affordable ingredients. For example, you can create a natural scrubber using lemon juice and salt. Get rid of stubborn stains by sprinkling baking soda and vinegar on the affected area. It will trigger a chemical reaction that will lift the stain without any problem. But if you are not really into doing the cleaning by yourself, you always have the option to hire a company who offers house cleaning services while using only the best and safest green cleaning solutions.

It doesn’t matter whether you are a housekeeper, a business owner, or a homeowner, always remember that using store-bought cleaners can lead to health issues, …

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House Insurance Comparison: Overview of Factors That Affect Rates & How You Can Choose a Policy

As with any type of insurance, you are probably interested in getting the best possible deal on home insurance. Thankfully, there are tools that make it possible to not only search for policies, but to do house insurance comparison with multiple quotes to find the best one for you.

For some homeowners, price matters more than anything. This should not be the case, though, since overall value is more important than cheap rates. Consider both the premiums and deductibles. Think about the rebuilding costs of your home. How much will it cost to literally replace everything is your home and property is utterly destroyed? The current value of your home and the rebuilding price will not be the same. Try to estimate how much you will be able to afford to pay in deductibles in the worst case scenario and keep that in mind when doing house insurance comparison.

Here are some of the factors that affect the insurance quotes you will get:

• Home’s type of construction and age

• Location

• Credit score

• Deductible

• Certain risk factors (swimming pool, trampoline, aggressive dog breeds, etc… )

• Claims history

• Roofing material

• The yard / property / landscape

Older homes have a higher chance of something going wrong regarding the electric wiring, plumbing, HVAC systems, ceiling, and construction in general.

House Insurance Comparison of Coverage Types

There are certain things that general home insurance policies don’t cover. Make sure you know exactly what is covered and what isn’t before you make your choice. Sometimes it is the matter of gaps in the coverage, where the policy owner thought they were protected but either had incorrect or insufficient coverage. Such issues can be avoided by carefully reading over the terms of each quote you are provided with.

Flood insurance, for instance, isn’t always covered in basic policies. If you live in an older home and have concerns about plumbing, or live near a body of water, this is something you will definitely want to think about. All it takes is a few inches of water to utterly destroy your flooring and some of your furniture. Even a small stream can become a raging river if there is enough rain.

Discounts are sometimes available, especially if you install safety and security equipment.

Where can you get started with house insurance comparison? All you have to do is look into the unique insurance platform set up by Lemonade. It even has a neat AI bot that will help craft the perfect insurance for you. Get affordable, reasonable rates – especially if you use Lemonade House Insurance discounts.…

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5 External Climatic Factors That Affect an Interior Design Project

Dear friends, the emergence of architecture in human society
has taken a wide and distinct role in itself. Starting from
early eras where man used to live in caves, we have seen a
remarkable growth in architecture and allied fields, which
includes landscape and interior design

The recent being the use of computers and "Computer Aided Design"
in architecture, which allows a kind of perfection in design
and execution process of any building and its interiors.

In spite of all the technological advances, the primary function
of any building structure remains the same, protection from
outside environment and natural calamities.

Starting from a place to "protect yourself 'from nature, interior
design has become a "status symbol". Today's interior spaces have
a two way channel, first and the obvious one is the function and
second one is aesthetical, which is a little complex one.

It is quite obvious that the interior design of a space is directly
related to the function of the space. This means that two spaces
like a home and an office have two well defined functions, hence
It will reflect in every aspect of the interior design solution.

But apart from the there is one more important factor that
will affect each and every aspect of the final design solution,
and that's the geographical location of the architectural structure.

A hotel building at seashore and the other one at a hill station
will have a completely different sets of problems to deal with.
Lets see in a short way what are the external factors that can
affect an interior design solution

1) Amount of direct sunlight.

Locations on the far northern or southern hemisphere receive less
% of sunlight than those at the equator. That's why here the
building with more use of plane glass are used. Also artificial
lighting is given much importance.

2) External temperature.

External temperature directly affects the comfort level of internal
spaces. Since external walls act as a "buffer" between internal
and external climate, it is necessary to use the right construction
material for walls. Depending upon the wall material the internal
finishes also have limitations. This is especially true for
structure that face extreme climatic ups and downs, such as
locations in the gulf countries.

Hence selecting materials that can sustain heavy climatic changes
on a daily scale is challenging.

3) Humidity and Rainfall.

Because of the salty nature of air around coastal areas extra care
is taken for building construction materials, which can directly
affect the entire budget of the project.

4) Wind direction.

Wind direction and wind speed also has direct affect on the interiors.
Heavy winds exert a load on the external walls of the structure,
thus affecting the construction technology.

5) Land Structure and Topography.

Land structure is the nature of land on which the structure stands.
Various types of land structures include rock solid, marshy land,
etc … Topography of land is classified as plane or a site with slope.
If the site of the structure …

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