Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, March 22, 1992 TAG: 9203240098
SECTION: TODAY'S HOME PAGE: TH-2 EDITION: METRO
SOURCE: By SARAH COX
DATELINE: LENGTH: Medium
According to Home Show chairman Steven S. Strauss of Strauss Construction Corp., the 22nd annual show has a two-fold purpose. Attendees will be able to find the latest products and designs for today's home building at the show, which is expected to offer more than 130 different exhibits. Also, the tendency of affordability over high-tech fluff will be stressed, in answer to the need of many home builders who seek cost-efficiency.
"The exhibitors will be demonstrating product lines for affordable and upscale homes," said Strauss. "It will be a wide range, for a wide-range economy, from basics to luxury. We've never pushed the issue of affordable housing as much, but there will be more basic products shown now. It's a very strong trend.
"In the homes that I've built in the past, wallpaper and microwave ovens and the more expensive light fixtures were put in. That's when the economy was really heated up and everybody was moving up. But these are things that a purchaser can add later," he said.
Strauss said that in general, people view buying a home as a harder decision than getting married. He's had people tell him, "Buying a home, it scares us to death."
"It should be just the opposite," Strauss said. "A marriage is legally binding, but you can always sell a home. And a good realtor who knows the market is a good way of assuring that you're not being taken advantage of."
Both Strauss and James Buck, president of the Roanoke Regional Home Builders Association, said this show presents a unique, one-stop shopping opportunity to view every basic component for the home.
They are looking forward to what is predicted to be a stronger year in real estate than the last two years.
"I personally think '92 is going to be twice as strong as '91 ever thought about being," said Buck. "We've had two bad years, and it's put a tremendous burden on our industry. We're having difficult times right now, and because some insurance companies have pulled out of the title insurance business, it's harder for people to secure loans."
But to offset that, Buck says that if Congress will pass the bill President Bush introduced regarding tax incentives for first-time home buyers, younger people that can't buy a home now unless their parents help them, would then be able to come up with a mortgage.
"This would be a tremendous boost for everybody concerned. Building relates to everything - curtains, appliances, pick-up trucks . . . when you affect building, you affect all walks of life. Building is the third-largest industry in the country."
Buck said he also sees the mid-range homes ($85,000 to $120,000) as the hottest sellers right now. "The market is out there for those people."
Lower-income housing, which presents a crucial need not just in this area but across the country, is a tougher investment with less incentives. Because a lower-price home will usually be built on a low-price lot in a lower-income neighborhood, the equity won't be built up.
"If you can go in and develop a whole neighborhood," Buck said, then you can circumvent the pitfalls a run-down area will present. "You've got to buy that piece of land, and buy it right." He said lower-priced housing in neighborhoods which have been developed nicely represent a good investment.
On the other side of the economic scale, Buck said he believes custom home buyers are those people who already have equity built up in a home that they purchased 10 to 15 years ago. "The people on the borderline (financially), in a nice neighborhood, will put an addition on; they aren't going to move. It makes no difference, the cost of where something is - it's location, location, location that matters."
Roanoke is finally feeling the effects of the downward economy, a trend which Buck says Roanoke hasn't really assimilated before now because contractors in this area have been conscientious not to over-build.
"I think if people would think positively, instead of so much negative thinking . . . the people are out there who have the money right now, but they're scared to spend it," he said.
The Home Show has a built-in attraction, in addition to the variety of ideas and products it will be presenting. Buck said Smokey Bear will be there on Saturday, March 28 to greet the children. Also, pine seedlings will be given away in conjunction with the Re-Leaf Roanoke Valley effort.
The National Home Builders Association is celebrating its 50th anniversary this year and has published a comprehensive consumer publication, "Consumer Connection.," which will be given away at the Roanoke Regional Home Builders Association information booth.
by CNB