Home Sellers Splurging on ‘Curb Appeal’

(From smartmoney.com) Sales of hoes may lead to sales of homes. Strong spending on gardening equipment, furniture, and building materials in March, could mean homeowners are busily preparing make their homes more attractive to buyers. Retail and food service sales rose 0.8% from February to a seasonally adjusted $411.07 billion, the Commerce Department reported Monday. But while overall sales were up 6.5% year-over-year, building material and garden equipment jumped over 14%. That bodes well for the housing market, says Susan M. Wachter, professor of real estate and finance at the Wharton School of the University of Pennsylvania. “These retail sales are another an indicator of better home sales ahead,” she says.

What’s more, strong retail sales in March for home improvements come on the back of brisk growth in sales from both Lowes and Home Depot. Lowe’s recently announced a 13% spike in sales to $11.63 billion helped by an unusually mild winter and better cost control, while Home Depot’s fourth-quarter earnings rose 32% to $774 million. Wachter says the double-digit sales increase in Lowe’s other items like kitchen and bathroom cabinets – typically a big consideration for house-hunters — and new flooring further shows that homeowners may be preparing to increase the appeal of their homes.

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