BBYA shopper checks out appliances for sale at the Best Buy store in Miami, Florida.Joe Raedle | Getty Images
As Americans move into new houses, remodel homes and watch real estate values rise, Best Buy CEO Corie Barry said they are buying appliances and big-screen TVs and hiring the company to set up new technology.
The strong housing market is one of the key reasons why the consumer electronics retailer exceeded analysts’ expectations for fiscal first-quarter earnings, according to Barry. She said stimulus checks also fueled spending on home theaters, appliances and computing.
“Even with the elevated demand we have seen throughout the pandemic, we believe the nesting phenomenon will continue to drive demand for products and services that help customers improve their home experience,” she said on an earnings call.
Home prices have been rising for months, as housing supply falls to near-record lows and interested buyers make competitive bids. Home prices in March saw the biggest gain in over 15 years, according to the S&P CoreLogic Case-Shiller National Home Price Index. The pandemic has intensified those trends by nudging some consumers to move out of dense cities and into suburban or rural areas where they can have bigger yards or