Home Depot just taught you something about the housing market

That video above is from a year ago, but the current Home Depot fiscal situation is seemingly a lot better — their second-quarter profit just climbed 14 percent and they’re trading at around $88/share now (that’s up!). Check out this chart of their overall quarterly profit, too:

Home Depot Profits

Here’s the interesting aspect, via Quartz. Home Depot calls larger contractors “pros.” They classify smaller contractors as, well, “smaller contractors.” Apparently sales to the former are doing well:

Home Depot executives noted that sales to larger contractors—known as “pros” in Home Depot lexicon—are outpacing sales overall at the company, which is a good indicator of the health of Home Depot’s housing-related business. However, sales to smaller contractors aren’t growing as fast. “We think a lot of these smaller pros in the depth of the housing recession really exited the business, to start to work for some of the larger pros,” a Home Depot executive told analysts.

Larger contractor sales are outpacing overall sales? The company has $23 billion in sales. You’d have to figure that if you take the high-volume of overall sales in concert with the “outpacing” idea, it means that Americans are (for the most part) investing back in their houses again. That has to be a generally good sign, right?

That said, there are widespread variations at the local level:


Ted Bauer