The Housing Crisis Ripples Across the Web
Written by Stephen Bagg (contact - e-mail) -- December 15th, 2008 |
Share - Save - E-mail
It’s hard these days to be a homeowner. The housing-turned-credit crisis has sharply lowered home values across the country, and the proposed solutions have focused more on major industry players than on deed holders. This week, the New York Times reports that Bernanke’s newest innovation is to lower mortgage rates to a level last seen around the time JFK was sworn in – but it would not apply to current residents looking to refinance. Yes, it’s a bleak time for homeowners, and for the businesses that depend on them. As a bellwether of the industry at large, both Home Depot and Lowes are underperforming their annual trend of site traffic from last year.
Even though absolute volume of visitors to each site is greater than last year, a 4-month comparison of month-to-month changes shows negative movement for both home improvement giants when last year that movement was better, if not positive. This trend suggests fewer homeowners are able to shop for home improvement products, let alone spend money toward them. In July, those items were more geared to summer amenities such as dehumidifier, air conditioner and ceiling fans; in October, the products of the season were warmer: insulation, fireplace and heaters.
The site conversion data supports this case. Total transactions on HomeDepot.com and Lowes.com are down from October last year, by 28% and 37% respectively.
An assessment of month-over-month change tells a worse story: last October, each site almost doubled the number of transactions from September; this October, both Home Depot and Lowes saw that number dip. As the housing market declines, it will become increasingly difficult to turn around sales for these home-focused companies. And while they will likely outlast the economic downturn, it is uncertain how much time that will take.
Did you like that post? You'll love these.
Done reading? subscribe: To get an automatic feed of all future posts subscribe here, or to receive them via email enter your email address in the box in the right column.
Link to This Post:
Get the 
December 15th, 2008 at 2:59 pm
The feds always come back with lower rates. Do they actually have any other solid ideas besides lowering rates?
December 15th, 2008 at 6:27 pm
Note sure with the title choice, those figures prove the housing crisis. they are not a consequence of the housing crisis.
in current times, ripples could be change of traffic for the auto websites.
December 16th, 2008 at 3:08 am
I dont know what to do any more!
Just to hard to keep up with all this website!
December 16th, 2008 at 4:01 am
This ain’t a credit crisis any longer. Its now a full blown recession. I mean, when Detroit’s auto industry is on the edge of bankruptcy, you can hardly say that this is a crisis limited to real estate and mortgages and loans.
A friend of mine who’s a loan originator tell me that real estate is ready for a rebound, but the media is no negative that no one is even willing to consider that real estate might start climbing now. Bernanke trying to lower mortgage rates is probably in the hope that the sector takes off, and helps improve sentiment. If that doesn’t work, Home Depot and Lowes are going to see a lot less customers in 2009.
December 20th, 2008 at 10:49 pm
cheap nike shoes: HTTP://WWW.FASHION4BIZ.COM
We are wholesaler of Nike Jordan and Other Shoes in China. We are a professional exporting company in china. We supply many kinds of Shoes, such as Nike Shoes, Jordan 1-23, Air Jordan, AF1, DUNK, Air max series etc. Most of them are in stock and can be supplied surely on time. All these shoes are packed with original-boxes and cards
our price $33jordan shoes,$15tshirt,15sunglasess, $13cap,$33jean,$35bag
our website:
HTTP://WWW.FASHION4BIZ.COM
April 10th, 2009 at 11:10 pm
We specializing in providing designer handbags such as LV,Gucci,Chanel,prada,Miu Miu etc.These handbags are sourced from specialized factories experience in producing top quality items.Our quality range is 7 Star Replica, Designer Handbags, copy replica, exact replica, designer replica, mirror image. We are devoted to the Retail and Wholesale of AAA++ +(99.9% mirror copy)Designer bags.
We can also supply Christian Louboutin Shoes,Hair Straightener(CHD,GHI) and watches(Audemars Piguet,Cartier,Chanel ,Louis Vuitton,Rolex etc.).
we accept paypal.the MOQ is one,free shipping.Our company insists on the principle of “reasonable price,superior quality,timely delivery and excellent service”.We hope sincerely can cooperate with you.pls contact us freely if you are interested in some items of our products.
company name:Bagvv Trade Co.,LTD
company site:www.bagvv.com
http://www.wholesaleserve.com
contact info:Email/MSN:bagvv@hotmail.com(Sunny)
April 13th, 2009 at 1:38 pm
thanks
April 14th, 2009 at 12:26 pm
thanks
May 19th, 2009 at 1:08 pm
hi, msj 64 wonderful blog 64 share