CONTRACTORS LOOKING FOR SIGNS ECONOMY WILL TURN AROUND

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, January 26, 1992                   TAG: 9201280383
SECTION: ECONOMY                    PAGE: 19   EDITION: METRO 
SOURCE: CHARLYNE H. McWILLIAMS
DATELINE:                                 LENGTH: Medium
CONTRACTORS LOOKING FOR SIGNS ECONOMY WILL TURN AROUND
Donna and Ralph Knoebel of Roanoke are the kind of people who give the construction industry a ray of hope in desolate times.
The Knoebels are building a home.
Donna Knoebel said they decided to build now because interest rates are down and materials are cheaper. Also, she said, they have the resources.
Interest rates, in the double digits just weeks ago, are now low enough to enable consumers such as the Knoebels to buy a new house for the same monthly mortgage payments they made on an older home. Knoebel said they will be making the same payment, around $600, for a new home that has a $10,000 higher mortgage.
The Knoebels have been waiting since April to continue work on their new home because they haven't been able to sell the house they're living in. But the low interest rates are worth the wait, she said.
Unlike the Knoebels, other consumers are watching the economy to see what's going to happen before they make any moves.
People in construction say they're optimistic because of the interest rates and the strong rallies in the stock market but they're still scared.
"People are going to have to buckle down and ride this out," said James Buck, president of the Roanoke Regional Home Builders Association.
The passing of the federal highway fund last year, which increased funds to Virginia from $290 million to $430 million also is a positive sign to contractors. Because many of the construction jobs that are available are contingent on government funds, the legislation helps, said Barry Baird, vice president of Avis Construction.
Baird, who will also become president of Associated General Contractors of Virginia this month, said he's urging members not to desert the association during the recession. He explained that it was the efforts of the group that helped in the passing of the highway fund.
Buck said he has seen a slight increase in the number of jobs recently and predicts the increase will gain momentum in the spring. He attributes the increase to the growing confidence consumers have in the New River Valley.
"People have a better outlook on things here" compared to people in Northern Virginia, he said.

by Archana Subramaniam by CNB