REPORT

by Doil A. Campb.ll

llnw HOME sales fell6.59o in July

I lon increased rates. Commerce said this decline from a 663,000 unit pace to 620,000 was nothing to worry about. After all, starts are still 70.390 above the levels of a year ago. So the July rate was still quite high because for one thing it reflected healthy mortgage lending by the nation's savings institutions.

Many economists are expecting that this downtum will continue for several months because of the sharp rise in home loan rates this summer. So far I have not heard of these rates exceeding l49o and many expect this figure to ease downward. However, regardless of what some of the predictors say, I cannot overlook the fact that during the first seven months of this year, new family homes totaled 382,000, up 7090 from the 225,W sold in the year earlier period.

Frankly, I do not believe that interest rates are up to stay and I do not believe that even the present rates will stall the new housing revival. One could assume that 2s/o climb in mortgage costs would choke off the resurgence of home building, but to me the record does not come out that way. I think this year will come in at around 1.6 million starts, the staggeringly strong rebound which is above everybody's expectations. So I firmly believe that l4t/o mortgage rates will not stifle the revival and I am also ville Builders Supply, Sandersville, Ga.; Beverly Whelchel, Southeastern Roofrng & Insulation, Cordele, Ga. confident that this rate will not remain too long.

The DISC program is a bringing together of approximately 15 dealers of the same approdmate size who are noncompetitors for the purpose of sharing ideas, figures, etc. The program lasted for l% days (in on Sunday p.m. for social and dinner, meet all day Monday, tour a yard, meet Tuesday until lunch and depart).

After a predetermined agenda for the first meeting, the topics and location of the next meeting are determined by the participants.

The majority of the first meeting was geared to allow participants to get to know something about the other participants' business.

The groups will meet twice annually at a location of their choice, usually in a city where one of the participants is located. The only fee is a sharing of expenses, usually $50-$75 per firm. The group meeting recently will meet again in February in Macon, Ga.

Several weeks ago prices of lumber started a rather rapid decline. Some items dropped almost in half, others took a sizeable tumble, but today it looks as if the bottom has been reached and that we will soon see a stronger market than we have had for the past month or so. Right now might be a good time to check your inventory.

I know you have all received literature, announcements, etc. on our forthcoming convention, Oct. 18-21. This 79th annual meeting will be at the Seelbach Hotel, 500 4th Ave., Louiwille.

Executlve Vlce Precldent

lN fUe continuing effort to provide Ithe membership with productive education programs, the Young Executives, in cooperation with the Western Wood Products Association, presented a retail building seminar at the Hilton Airport Inn, Nashville, Oct. 5.

The seven hour presentationcovered all aspects of the retail lumber industry.

Registration for the Oct. 3l-Nov. 2 convention in Acapulco, Mx., has been a tremendous success, already exceeding our original supply of rooms; however, additional rooms have been secured. Preconvention stays in Acapulco and postconvention tours to Mexico City also are popular.

The board of directors meeting will be held on Nov. I with a delegates luncheon and business sessions scheduled as well, More than 20 companies have volunteered to be convention sDonsors.