Tri-State Home Show launches

Video: Home trends spotlighted

The Tri-State Home Show is held every year close to the beginning of spring, a time when people think about remodeling their homes or buying or building a home.

However, 2007 was a year in which the nation’s red-hot real estate market retracted, with sales and construction dropping from record levels.

“Real estate is better off here than elsewhere,” said Kevin Cherry, of Cleveland, Tenn., who attended the Home Show on Friday with his daughter Kaleah, 8. “I have friends in Michigan and New England who are hurting.”

The Home Show is continuing today and Sunday at the Chattanooga Convention Center.

Mr. Cherry said he bought a house two years ago and was at the show looking for ideas on remodeling his basement to add a living room. He was interested in audio and video displays, he said.

One local Realtor said he agreed with Mr. Cherry’s assessment of area market conditions.

“We are rebounding,” said Jason Farmer, last year’s president of the Chattanooga Association of Realtors. “Consumers realize rates have hit close to an all-time low, and there is enough inventory where it is a buyer’s market.”

Chattanooga generally doesn’t have dramatic sale or price gains like areas such as Florida or California, Mr. Farmer said, but is compensated by not having huge drops such as those markets are experiencing. Local Realtors sold 7,450 houses in 2007, the third best year on record.

More people are looking at new homes, and sales should pick up early in the spring, said Tim McClure, president of the Home Builders Association of Southern Tennessee. Bankers are reporting an increase in loan activity to builders, he said.

“The dropping of the interest rates will have to make people start making the move,” said Mr. McClure, whose association sponsors the home show along with EPB.

Linda and Don Hunter, of Pikeville, Tenn., said they went to the show looking for ideas on a house they nearly are finished building. They were especially interested in oak floor displays, said Mr. Hunter, a retired farmer from Ohio.

Scott and Donna McNeese said they saved money to remodel their house instead of risking a loan in the uncertain economic market. They were most interested in floor displays, Mrs. McNeese said, because they are concerned about how to cover the concrete slab in the garage they plan to convert to living space.

Representatives of businesses displaying products and services at the show said the event is a crucial revenue generator.

Marty Hilliard, president of Home & Lawn Care Services Inc., said the show generates 80 percent of her business.

Grant Parker of Color Scapes Landscaping Inc. said the event is the perfect means of showing off his pondless waterfall, which he called a no-maintenance water feature.

HOME SALES DOWN

Home sales in the Chattanooga area in 2007 were down from a record year in 2006 and the second-best year for sales in 2005.

2005 home sales: 7,957 (second best year)

2005 median price: $131,500

2005 home starts: 2,232

2006 home sales: 8,407 (record year)

2006 median price: $136,500

2006 home starts: 2,006

2007 home sales: 7,450 (third best year)

2007 median price: $139,725

2007 home starts: 1,491

Sources: Chattanooga Association of Realtors; The Market Edge Inc.

ABOUT THE HOME SHOW

The Tri-State Home Show will be from 10 a.m. to 9 p.m. today and from 11 a.m. to 5 p.m. Sunday at the Chattanooga Convention Center. Tickets are $7 for adults or $6 for seniors and children 16 and under. The donation of a can of food to the Chattanooga Area Food Bank will discount a ticket by $1.