New York, NY, Mar. 21--Concerns that the U.S. housing market is losing momentum run contrary to signs that show strength in the sector, according to Robert Tillman, chairman of Lowe's Companies.
Tillman told a retail conference that low interest rates, positive demographic trends and a growing immigrant population suggest a strong U.S. housing market in 2003. Single family building permits are rising at record levels, indicating a strong pipeline of new homes, he said.
"Some feel that the housing market is on the verge of collapse," Tillman said. "These concerns seem to ignore the fact that for the past 34 years, median home prices in the U.S. have risen each and every year.
"The questions surrounding Iraq, rising unemployment and more recently rising fuel prices have caused consumers to become even more selective in how they spend," he said.
"Fortunately, we continue to capture a disproportionate share of discretionary spending" as rising housing values give consumers confidence to undertake home projects, he added.
