Jonathan Johnson, CEO of Overstock.com, claimed that a booming real estate market and an increase in home moves helped keep the company profitable during the coronavirus pandemic.
Johnson said of “Varney & Co.” by FOX Business. On Wednesday, Overstock, which sells a wide variety of furniture and housewares, saw a sharp shift in online sales over the past year.
“There has been a secular shift from furnishing homes to buying bricks and mortar to doing business online,” Johnson told presenter Ashley Webster. “The same thing that happened to books two decades ago and clothes ten years ago has now happened in the home furnishings market, and we think that’s a good sign for Overstock.”
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A recent study found that pandemic closings had accelerated residential real estate moves in the United States, with states like Texas and Florida having the highest relocation rates.
Low mortgage rates, strong demand and limited housing supply have seen property prices and sales soar. Through the fourth quarter of 2020, every major subway tracked by the National Association of Realtors saw property prices rise year over year 88% of the metropolitan areas are seeing double-digit price increases.
Overstock is currently listed in 31 hedge fund portfolios, with stock values ââup nearly 85% year over year.
Johnson said he doesn’t expect momentum to slow anytime soon, despite global supply chain problems and delivery delays.
“It’s really become the cost of containers when goods come in,” said Johnson. “Our suppliers did a pretty good job of that.”
Josephine Nesbit of FOX Business contributed to this report.