Lowe’s says pandemic-fueled home improvement demand could cool in 2022

Lowe’s says pandemic-fueled home improvement demand could cool in 2022

An employee organizes buckets for sale inside a Lowe’s Cos. store in Burbank, California.

Patrick T. Fallon | Bloomberg | Getty Images

Lowe’s sales outlook disappointed investors on Wednesday and raised concerns the pandemic-fueled boom in do-it-yourself and decorating projects is cooling.

The company’s shares dropped by as much as 4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in premarket trading. Then, the stock rose later Wednesday as new data from homebuilders showed a huge appetite for housing — even during a typically slow season and a period of inflation. That backdrop coupled with Lowe’s executive comments about the possibility for market share gains, help the stock bounce back.

Shares rose 2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to close at $257.54 on Wednesday. The company’s stock is up about 60{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} this year, bringing its market value to $173.52 billion.

During an analyst meeting, Chief Financial Officer Dave Denton said the retailer anticipates its sales will outpace competitors and it will win more business from home professionals. Still, he acknowledged that Lowe’s is preparing for a “modest sector pullback in 2022” when compared with a year of such high demand and sales fueled by government stimulus.

Lowe’s sales have gotten a lift from Americans who fixed up their yards, tackled DIY projects and redecorated rooms during the Covid pandemic. Even as some of those “nesting trends” recede, however, its sales have been buoyed by the strong real estate market.

The company projected that same-store sales could drop by as much as 3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} or be roughly flat in fiscal 2022 compared with this fiscal year. Total same-store sales will range from $94 billion to $97 billion in its upcoming year. That fell below analysts’ estimates of $97.64 billion, according to Refinitiv.

Lowe’s is estimating overall sales of about $95 billion for this fiscal year, which is one week shorter than next fiscal year.

For fiscal 2022, Lowe’s expects to earn between $12.25 and $13.00 per share. On average, analysts were expecting Lowe’s to earn $12.93 per share, according to Refinitiv.

CEO Marvin Ellison said the company can keep driving growth by launching new private labels, expanding its e-commerce business and becoming a one-stop shop for supplies to help older adults age in their own homes. For example, he said it is debuting a modern decor brand called Origin 21. He said it is speeding up deliveries of big and bulky purchases, such as appliances, with a new pilot in Florida and Ohio. That more efficient process is boosting profits and customer satisfaction, he said.

Together, he said, those efforts will “expand our share of wallet with both the DIY and pro customers.”

Ellison said the retailer will benefit from a favorable backdrop, too, including more money in consumers’ savings accounts, historically low interest rates, rising home values and an aging inventory of U.S. homes. About two-thirds of the company’s sales are driven by repairs and maintenance, he said.

Plus, Ellison said the pandemic has inspired people to invest more in their homes, from millennials who are buying first homes to baby boomers who are adapting an older home.

“There’s been a longer-term shift in the consumer mindset about the importance of the home,” he said. “Our view of the home is a sanctuary that may need to serve several multiple purposes: residence, office, school, gym, and a gathering place for indoor and outdoor entertainment. And given the extension of remote work, we’re expecting a permanent step up in repair and maintenance cycle.”

Separately, the company said it plans to buy back about $12 billion in shares both this year and next year.

DoD’s average housing subsidy sees big increase as real estate continues to get pricier

DoD’s average housing subsidy sees big increase as real estate continues to get pricier

The average amount of housing subsidies the Defense Department will give out to service members in 2022 is increasing substantially compared to previous years.

The Pentagon says the mean increase of basic allowance for housing (BAH) will go up by 5.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, a wide jump from the past two years, which have averaged just below 3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. DoD will spend $25.6 billion on BAH for 2022.

Depending on grade and dependency status, service members will see BAH go up by a range of $74 to $168. Allowances will not decrease.

“The department is committed to the preservation of a compensation and benefit structure that provides members with an adequate standard of living to sustain a trained, experienced, and ready force now and in the future,” DoD wrote in a Wednesday press release.

It’s important to note that the BAH increase is only an average. Some service members may not see the full 5.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} increase; others could see allowances even higher than that.

“The Department collects rental housing cost data annually for approximately 300 military housing areas in the United States, including Alaska and Hawaii,” the release states. “Median current market rent and average utilities (including electricity, heat, and water/sewer) comprise the total housing cost for each military housing area and are included in the BAH computation. Total housing costs are developed for six housing profiles (based on dwelling type and number of bedrooms) in each military housing area. BAH rates are then calculated for each pay grade, both with and without dependents.”

Part of the reason for the hefty increase in BAH may be because housing and rental prices rose in 2021 and 2020.

According to Redfin, a real estate brokerage firm, the median sales price for a house increased by 13.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} when comparing settlements from October 2020 to October 2021. Sales prices increased 14{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} from October 2019 to October 2020.

Meanwhile, the number of homes for sale is down nearly 18{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, and 44.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of houses sold over their listing price.

The housing market became so competitive last year that DoD temporarily increased BAH in 56 areas for the last quarter of the year.

“Rental housing market data collected by the Department of Defense from March-August 2021 indicates that the COVID-19 pandemic has had a significant impact on rental housing costs in the 56 affected markets. Notably, low availability and turnover of rental housing stock during the spring and summer months led to rental cost increases in many locations,” a DoD September release read.

The 2022 BAH rate supersedes those temporary increases.

According to Redfin, some of the areas with the fastest growing sales prices are cities in Florida and Arizona, as well as Detroit. The military has multiple bases in all of those areas.

Lawmakers have recently had some concerns about BAH. The 2022 Defense Authorization Act requires a report from DoD on whether BAH is sufficient enough for an average military family.

BedBrock Developers form luxury real estate brokerage

BedBrock Developers form luxury real estate brokerage

Award-winning BedBrock Developers with a stellar reputation for building the finest ultra-high-end luxury homes and communities in the Valley and with a full design-build process in house including architecture and design, announced its newest addition, BedBrock Real Estate Company, a luxury real estate brokerage founded by Rich Brock, founder of BedBrock Developers, Business Loan.

The upscale brokerage will represent a curated collection of real estate, starting first with $150 million in listings in BedBrock Developers’ captivating Crown Canyon community. The impressive development offers seven extraordinary luxury homes currently in design and three homesites exclusively reserved for custom estates up to 24,000 square feet in size. Crown Canyon, with 12 total estate sites, will be the most prestigious address in Paradise Valley with its first two homes already under construction. Crown Canyon is the next chapter for BedBrock following a record-setting success with Cameldale Estates.

READ ALSO: Here’s why the luxury housing market is exploding in Metro Phoenix

BedBrock Real Estate Company will additionally represent BedBrock Luxury Certified estates, vetted by the company and deemed a good fit for the exclusive brokerage portfolio. The brokerage will be working with clients to deliver an elevated experience buying and selling luxury real estate. An experienced, in-house marketing team will bring an elegant, fresh approach to creating results in the real estate business.

The upscale brokerage will be led by designated broker Lenny Traw and the founding real estate sales director with the group is Brian Kusmer. Traw and Kusmer have a combined 65 years’ experience in the real estate industry in the Valley and will guide the formation of the brokerage with alignment to the company’s core values of exceptional service, attention to detail and exceeding expectations. The boutique firm will invite select agents to join the exclusive brokerage in first quarter 2022.

Using BedBrock’s profound reputation for luxury and quality, the team will bring its signature attention to detail into this new venture.

“It is a natural progression for us. Based on our growth and volume, we felt bringing sales in house was the logical next step for us. My vision is to make this a successful venture and the ultimate, high-end experience for our clients, elevating the expectations for how real estate transactions are conducted. We believe there is an opening in the marketplace to provide the next level of professionalism in the ultra-luxury real estate market,” says Brock.

“In addition to representing our own homes and communities, our objective is to vet preowned homes to give confidence to both the buyer and seller of a home, providing a seamless sales transaction. It’s been my vision to offer a full array of top-notch services under one roof from construction to development to architecture and design to concierge home maintenance. Launching our brokerage allows us to be truly full-service with our cherished clients, providing consistency and seamlessness to the customer experience,” says Brock.

Traw has been an industry veteran for 42 years and bring exceptional experience to the new brokerage.

“I couldn’t imagine partnering with a better developer than Bedbrock. Rich and I have been friends for years, and we’ve talked about this for a very long time. There’s never been a better time than now, and I couldn’t be with someone I trust more. It’s a privilege for me to be involved with BedBrock in this way,” says Traw.

New to the team with 23 years of real estate experience is Kusmer, who joined the boutique brokerage from its inception. 

“The vision I had when I got into the business in my 20s was to work hard to be a part of an organization like Rich Brock’s company. I worked my whole career to have this opportunity to partner with a top developer in town. My passion is the high-end luxury market, and this opportunity couldn’t be a better fit for me to work with the most extraordinary homes and communities,” says Kusmer.

Beginning today, BedBrock Real Estate Company is proud to offer extraordinary homes represented in Crown Canyon and a select number of BedBrock Luxury Certified homes for sale.

Visit : https://hobartloans.com/

Should You Include Real Estate in Your Retirement Plan?

Should You Include Real Estate in Your Retirement Plan?

Investing in real estate is one of many ways to set aside funds for retirement. If you are looking to…

Investing in real estate is one of many ways to set aside funds for retirement. If you are looking to diversify your savings, you might consider including real estate in your retirement plan. There are advantages and disadvantages that come with property investments, along with different options to consider.

Including real estate in your retirement plan might consist of:

— Selling your home.

— Owning a rental property.

— Purchasing and selling property.

— Contributing to a real estate fund.

Read on to learn more about what to expect if you include real estate in your retirement plan.

Sell Your Home to Help Fund Retirement

If you have paid off the mortgage for your current home, you could sell it in retirement to bring in cash. You could then use the proceeds from the sale to fund part of your retirement lifestyle or invest the funds to generate future returns. You might rent an apartment or purchase a smaller place that requires less maintenance to reduce your living expenses.

Before putting your home up for sale, it’s worth researching the real estate market both where you currently live and in the new location. “In some circumstances, downsizing square footage may still end up costing the same, depending on the location of the new home,” says Ross Cohen, a financial advisor at Bartlett Wealth Management, which has offices in Cincinnati and Chicago. If you relocate to a cheaper area, you may find housing costs are lower in the new place.

Even if you sell your home, you’ll likely want other sources of income to help support your retirement lifestyle. These funds could come from other accounts like a traditional or Roth IRA, an annuity or a pension. “While some individuals may want to downsize their primary residence in retirement, it’s not wise to rely upon the proceeds from the sale of a primary residence,” Cohen says.

[SEE: The Most Affordable Places to Retire.]

A Rental Property Can Generate Retirement Income

Purchasing a second property in the city where you live or owning a place in a popular vacation spot can help generate income to use in retirement. You could buy an apartment, lease it to tenants and collect monthly rent. If you buy a cabin in the mountains, you could use it as a getaway and rent it to others when you are not using it.

Owning rental property typically requires a large upfront investment. You might pay for the place with cash or use your savings to make a down payment and take out a mortgage. If you have funds in a self-directed IRA, you can use money from the account to invest in real estate, but there are various requirements you’ll have to meet. “The investor must buy the real estate strictly for investment purposes,” says Daniel Milan, managing partner of Cornerstone Financial Services in Southfield, Michigan. You’ll have to pay in cash from the IRA and also must use the IRA to pay for all the expenses related to owning the property.

Carefully consider whether the rental income the property generates will be enough to cover the related expenses. “To make an investment property a worthwhile endeavor, you need to calculate the expected income and subtract the costs,” Cohen says.

A drawback of owning and renting property is that the investment is typically not very liquid, meaning if you have a financial emergency, it might not be possible to sell the place quickly and receive cash when it is needed. Even if you sell, you might not get the best price if the market prices are lower than normal in that area.

[See: The Best Places to Retire in California.]

Buy and Sell Multiple Properties

If you live in an area where housing prices are expected to rise, you might be interested in purchasing multiple homes with the plan of selling them later for a higher price. You could also acquire several properties that you rent to tenants. As your income goes up, you could build a real estate portfolio which could help fund retirement.

While owning properties may help your retirement funds increase, there is often a vast amount of legwork involved with finding places, acquiring them, making needed repairs or renovations and then renting or selling them. The time requirement is typically much more demanding than what’s needed for other types of investments. “Real estate, unlike stocks, requires management and ongoing maintenance,” says Pam Krueger, founder and CEO of Wealthramp, an advisor matching platform that connects consumers with vetted fee-only financial advisors. Hiring a property manager can alleviate some of the burden of caring for multiple properties, but you will have to pay for the service, which will cut into your profit.

[READ: How to Use Home Equity in Retirement.]

Contribute to a Real Estate Fund

Rather than purchasing and renting or selling property yourself, you might include real estate in your retirement plan by contributing to a fund. “Within 401(k)s or other retirement plans, typically there will be some type of real estate indexed mutual fund available for the investor to invest in a broad basket of real estate investment trusts,” Milan says. “Within a traditional or Roth IRA, the investor will have more options to invest in real estate ETFs or other vehicles that provide more targeted or thematic real estate exposure.”

These arrangements allow you to invest in real estate without purchasing and owning a home yourself. As such, you won’t have the responsibility of managing a property or collecting rent, and the investments you make are more liquid. However, a potential downside is the risk that the fund could decline in value. “You see more volatility within traded real estate, as they are subject to the whims of the equity markets and not necessarily the net asset value of the underlying real estate owned,” Milan says.

More from U.S. News

The Best Places to Retire in 2021-2022

Retirement Spots With Year-Round Nice Weather

The Best Beach Towns to Retire in the U.S.

Should You Include Real Estate in Your Retirement Plan? originally appeared on usnews.com

A new pup means a holiday decor change-up for Karen Bertelsen

A new pup means a holiday decor change-up for Karen Bertelsen

Karen Bertelsen usually has her home extensively decked out for the holidays. But this year her decorating plans have gone to the dogs.

Well, to one dog: her five-month-old blue standard poodle pup, Lip — short for Phillip, named for the character on the former TV series “Shameless.”

Karen Bertelsen with standard poodle pup Lip ? short for Phillip ? at her Christmas tree decorated with dried citrus slices.

With a rambunctious young canine in the house, the former TV personality and DIY blogger (The Art of Doing Stuff ) had to reconsider some of her usual go-to Christmas choices. So this year, Bertelsen opted for a simple, easy decor plan that still makes her heritage home feel plenty festive.

“Usually when I do Christmas, it’s a three-day set-up and I love all of it. Give me all of the Christmas!” she says. “But now I have a puppy. I’ve decided to have an imperfect Christmas.”

Bertelsen bought her red brick 1840 English cottage in Dundas, Ont., 25 years ago as her first home. But she liked it so much, she’s never left. As well as Lip, her family includes two chickens that live in a backyard coop.

"I have a wood-burning fireplace so it immediately feels homey and wintery," says Bertelsen of the feature dressed up with white LED lights and natural elements.

For the holidays, she puts a huge garland on her front hallway mirror and sets up three Christmas trees: in the foyer, the dining room and her bedroom, and occasionally a small one on the vintage candy counter that serves as her kitchen island. She chooses real balsam fir trees because they smell good, have soft needles and at the end of the season, she can carve off a twig, remove the bark and make a weather stick. (Weather sticks, 15 to 16 inches long, can be nailed to a wall, fence post or pillar. When fair weather is coming, the stick turns up; if bad weather’s looming, it turns downward).

Normally, Bertelsen would deck her trees with her cherished vintage glass ornament collection, but mindful of puppy shenanigans, the treasures are on hold until next year. “I don’t care what colour they are or what they look like,” she says. “I have been collecting them for years at garage sales and at auctions and flea markets. Some of them are wildly expensive, but you can get the same look with cheap glass balls. They don’t have to handcrafted German glass ornaments. I have some that were garish colours and now are soft and muted.”

A huge mirror in the front hallway of Bertelsen's heritage home is treated to a big garland and tartan bow.

This year Bertelsen dehydrated orange slices and hung them on her Christmas tree, as well as DIY homemade candle lights that look like real candles but without the fire hazard. Outdoors, her plans included garland swags around the front windows, white lights and red bows around the yard, and a wreath with orange slices and pine cones for her front door.

“I like a very traditional, English-inspired look in this house,” she says. “I have an English saddle I put on display, and I use plaids and lots of red, gold and natural elements. It’s a cross between upstairs and downstairs ‘Downton Abbey’.”

Pine cones are a go-to element of Bertelsen’s decor scheme. There are “101 things you can do with pine cones,” she says, whether you buy them at a dollar store or collect them from your yard. “If all you have is pine cones and Christmas balls in baskets, you’re all set to make your home festive. You can scent the pine cones with essential oils.”

Waxed amaryllis bulbs coated in gold foil create a dramatic, living display as the stalks shoot up to grow their showy flowers.

Bertelsen says food items are useful holiday decorating accessories, such as clementine oranges that can be placed in bowls or lined up in a row for a more contemporary look. Clementin decorated with cloves can interspersed in a bowl, or lined up with pine cones, with LED copper wire lights wound through them.

“The lights run off batteries and most come with timers so you can turn them on at 8 p.m. and set them to turn off at midnight,” Bertelsen says. “It’s a beautiful Christmas display and makes you feel good.”

She makes waxed amaryllis bulbs that she decorates with glitter or gold foil and arranges on a buffet to watch them grown and bloom for Christmas.

“I don’t need a ton of accessories as I have a wood-burning fireplace so it immediately feels homey and wintery,” she says. She has a big antler on her dining room table that adds to the seasonal mood, along with lots of candles.

A tired five-month-old Lip safely snoozes beneath Bertelsen's tree decorated in natural and unbreakable items.

She’ll host Christmas Eve dinner at her house with family members who all live nearby. “I invite people for 6 p.m., but since it’s my family, they show up at eight. We fill up on appetizers or have a meal like chili.” She says her family knows to expect something interesting to happen at her place — a few years ago she ordered “miracle berries” that make things sour taste sweet, and vice versa. “We could eat lemons or drink pickle juice and it tasted great. We killed ourselves laughing.” She said she’s especially looking forward to holiday meals this year since she’s lost five pounds chasing Lip around.

Bertelsen's repurposed antique hardware cabinet gets vintage holiday treatment with sleigh bells and an evergreen garland.

To create special Christmas decor with a DIY twist, Bertelsen shares her tips for making your house look holiday-ready without breaking a sweat:

1. Use pine cones, fresh sprigs of greenery and Christmas balls. Put them in baskets, bowls and hang them. The sprigs have to be replaced once a week or so if they aren’t in water.

2. For every Christmas decoration you put out, take a piece of home decor away and put the items in the box you store your Christmas stuff in until the holidays are over. By replacing and not adding, it will help keep your home from looking crowded and overly busy.

3. Decorate with food. Clementines and mixed nuts in the shell are Bertelsen’s go-to Christmas foods that work for both decor and snacking.

4. Just because you own it, it doesn’t mean you have to use it. If you don’t like a Christmas decoration or don’t have room, keep it for next year — your mood could change and you might like it again. But if it hasn’t been out for a few years, it’s time for the piece to go.

Tracy Hanes is a GTA-based writer and a freelance contributor for the Star. Reach her via email: tracyhanes@yahoo.ca

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Master Gardener: Succulent gifts from your garden | Home and Garden

Master Gardener: Succulent gifts from your garden | Home and Garden

Looking for an affordable gift made with love from your garden? How about a unique gift for the special gardener in your life? Or a gift for the hard-to-buy-for person who already has one of everything, Pay Per Touch?

You can easily make a number of gifts using succulent cuttings. Succulents are perfect for gardening “Central Valley Style” because they love the sun and are drought tolerant. Start now, and by gift-giving time, all your creation will need is a bright bow!

Some craft ideas are: a living wreath for hanging or for use as a table centerpiece with a candle, a living picture frame for a garden or patio wall, a fairy garden, a succulent globe, or a cute basket filled with different succulents. Making these gifts is affordable — no need to go searching the garden centers for succulents. Look no further than your own —or your friend or neighbor’s — succulent garden. Pinch a little here, trim a tad there, uproot a few that are too crowded, or rescue a forlorn “pup” from its parent.

Succulents are native to Mexico and South Africa. They have fleshy leaves and stems that hold and store water to help them survive drought. Most are frost tender, and they don’t like either overwatering or extreme desert conditions. Because succulents have a fairly thick skin, they are not prone to insect damage. Mealy bugs or woolly aphid are the more common pests but they are rarely troublesome and can be controlled by dislodging them off plants with water.

Starting/rooting succulents is fairly easy, but there are a few tricks of the trade to make it even easier. To root succulents with stems, cut them off the main plant and let them sit for 7-10 days to “harden off” or callus. This helps avoid fungal damage to the root. For more rosette-type succulents like aloe, agave and sempervivum, pull off the “pups” or “babies” on the sides and replant them.

Plant in clean moist potting soil specifically formulated for succulents. Hormone rooting powder is not necessary. Put the pots into a tray of water for a minute or two so the soil becomes saturated, then keep the plants just slightly moist. Resist over-watering at this stage. In the spring, all succulents appreciate some light fertilizer.

Be creative in mixing different succulents together to make a design. Just as in a flower arrangements, using different colors, leaf shapes and textures adds interest.

Here are a few general instructions for crafts:

  • To make a succulent wreath, purchase a wire wreath form, line with mesh, fill with soil, wrap with coco fiber, and insert cuttings in a variety of colors and shapes. If this is going to hang, you can wrap it with thin wire or fishing line until it’s sufficiently rooted to hold together.
  • Try making a succulent topiary with styrofoam, wire, plants and rocks.
  • You can build a short box, plant it with succulents and then put an old picture frame around the arrangement – a real Living Picture. This could be hung on a wall, or add legs to make a small table.
  • Fairy Gardens are the very latest design element. Using miniature accessories and garden accents, sedums, moss and pebbles, even tiny electric lights can turn a boring container into a Fairyland.
  • Succulent globes can be made by wiring two hanging baskets together, lining with coco fiber, then filling with soil. Poke holes in the fiber and insert succulent cuttings. Keep moist by light spraying until the cuttings are rooted (a gentle tug should not loosen the cutting if it has rooted) before watering the ball.

Search online for “succulent crafts” for more ideas. The possibilities for a gift of succulents are limited only by your imagination, and are sure to make your holidays Merry & Bright!

VISIT : https://paypertouch.com/